Parliament‘s Winter Session to Consider Raising FDI Limit in Insurance to 100%
the upcoming Winter session of Parliament,scheduled from December 1st to December 19th,is expected to consider legislation allowing for a 100% Foreign Direct Investment (FDI) limit in the insurance sector. The Insurance Laws (Amendment) Bill 2025 is among the ten bills listed for introduction during the 15-day session, according to a Lok Sabha bulletin.
This move follows Finance Minister Nirmala Sitharaman’s proposal in the 2025 Budget speech to increase the FDI limit from the current 74% as part of broader financial sector reforms. The insurance sector has already attracted Rs 82,000 crore in FDI to date.
The proposed amendments aim to deepen insurance penetration across India, stimulate growth and development within the sector, and improve the overall ease of doing business. Alongside the primary Insurance Act of 1938, amendments are also planned for the Life Insurance Corporation Act 1956 and the Insurance Regulatory and Development Authority Act 1999.Changes to the LIC Act specifically seek to empower the corporation’s board with greater operational autonomy, including decisions regarding branch expansion and recruitment.
The government anticipates these reforms will strengthen financial security, prioritize policyholder interests, and encourage greater market participation, ultimately supporting economic growth and job creation. The long-term goal is to achieve “Insurance for All by 2047.”
Beyond the insurance sector reforms, the finance Ministry will also introduce the Securities Markets Code Bill (SMC), 2025. This bill intends to consolidate existing legislation – the SEBI Act 1992, the Depositories Act 1996, and the Securities Contracts (Regulation) Act 1956 – into a single, unified code.
Moreover, the Ministry will present the first of two batches of Supplementary Demands for Grants for the 2025-26 fiscal year, requesting parliamentary approval for additional expenditures beyond those initially outlined in the Budget. The second and final batch of supplementary demands is anticipated during the Budget session, expected to commence towards the end of January.
