Government's move to relax FDI limit for insurance a big boost for small insurers SECTIONS Share Synopsis After years of deliberation, the Indian government has increased the Foreign Direct Investment (FDI) limit in insurance companies to 74% against the current 49%, Finance Minister Nirmala Sitharaman announced on Monday in the Union Budget of 21-22 albeit some “safeguards”. Agencies Experts anticipate more of the country's 23 private life insurers and 28 private general and health insurers to contribute to the growth of the sector with more impact. Related MUMBAI: Five years after India increased the ceiling on overseas ownership in its insurers, Finance Minister Nirmala Sitharaman Monday heralded bold reforms in a sector considered crucial for underpinning infrastructure financing. She raised the headroom on foreign holding to 74% in one go, potentially multiplying fund-raising avenues in a long-gestation industry that needs as much capital as is available.