Budget 2021: Industry welcomes insurance FDI limit hike to 74%; management control clause remains a concern While announcing the proposal to hike FDI limit to 74 percent for the insurance sector, Finance Minister Nirmala Sitharaman said there would be 'safeguards'. Keeping management control with Indians could dissuade infusion of fresh investments from abroad. At the face of it, the proposal is a positive development for the country's insurance industry. Finance Minister Nirmala Sitharaman, while presenting the Union Budget 2021-22 on February 1, said the foreign direct investment (FDI) limit in India's insurance sector will be hiked to 74 percent from 49 percent. At the face of it, the proposal is a positive development for the country's insurance industry that has been saddled with dual issues of stagnating growth amidst the COVID-19 pandemic and rising needs for capital infusion.