Module: General Practice
Q167: A major structural reform in the Union Budget 2026-27 was the increase in the Foreign Direct Investment (FDI) limit for the Insurance Sector. What is the new FDI cap?
✅ Correct Answer: C
The FDI limit in the Insurance sector has been raised to 100%. FDI (Foreign Direct Investment) refers to overseas companies buying stakes in Indian insurers.
The limit was raised from 49% to 74% in 2021.
The 2026 reform raised it to 100% (Fully open). This enhanced limit is available for companies that invest the entire premium income within India, ensuring the capital supports India's long-term infrastructure needs (e.g., buying G-Secs or Infra Bonds).
The limit was raised from 49% to 74% in 2021.
The 2026 reform raised it to 100% (Fully open). This enhanced limit is available for companies that invest the entire premium income within India, ensuring the capital supports India's long-term infrastructure needs (e.g., buying G-Secs or Infra Bonds).