Summary:

Finance Minister Nirmala Sitharaman told Parliament that boosting the insurance sector's FDI cap to 100%, up from 74%, is likely to improve annual growth to 7.1% over the next five years. This measure, proposed in the Union Budget for 2025-26, eliminates the necessity for Indian partners, hence enabling foreign entrance. It seeks to attract long-term investment, boost competition, facilitate technology transfer, and increase insurance coverage. Final FDI decisions are made by firm entrepreneurs based on strategic considerations.

To increase coverage under important social security systems (PMJJBY, PMSBY, and APY), Finance Minister Nirmala Sitharaman highlighted grassroots activities involving banks and local governments. On July 1, 2025, a three-month Financial Inclusion Saturation Campaign began, with an objective of 2.70 lakh Gramme Panchayats and Urban Local Bodies. Camps at the local level offer direct enrolling support. Furthermore, 2,421 Centres for Financial Literacy (CFLs) were constructed by March 31, 2025, with each spanning around three blocks to increase financial knowledge and inclusion.

Source: IBEF

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