2025 · Q72
Union Budget 2025 increased the Sectoral cap of FDI to 100 per cent from 74 per cent for:
General KnowledgeIndian Economy
- ATelecom Sector
- BPower Sector
- CDefence Sector
- DInsurance Sector
Explanation
The Union Budget 2025–26 raised the sectoral FDI cap in insurance from 74% to 100% (for insurers that invest the entire premium within India). Telecom already permitted 100% FDI, and the defence and power sector caps were left unchanged. The move aimed at attracting foreign capital into India's under-penetrated insurance market.