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Home » 100% FDI in insurance sector grants more power to regulators: LIC MD
Finances

100% FDI in insurance sector grants more power to regulators: LIC MD

Business Circle TeamBy Business Circle TeamFebruary 5, 2026No Comments2 Mins Read
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100% FDI in insurance sector grants more power to regulators: LIC MD
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Mumbai: The federal government’s current announcement to introduce 100 per cent FDI within the insurance coverage sector has granted “extra energy to the regulators,” mentioned LIC MD, Dinesh Pant.

He additional famous that India’s deal with its Insurance coverage sector by way of main bulletins in Price range 2026, together with current coverage modifications resembling GST discount and the insurance coverage modification invoice (introduced in December) reveals authorities’s intent in direction of “recognition of insurance coverage as a historic driver of financial development and its significance in bridging India’s safety hole.”

In an interview to ANI, Pant emphasises on authorities’s continued efforts in direction of attaining its purpose of “Insurance coverage for All by 2047.”

He says, “The funds, together with current coverage modifications, signifies the federal government’s sturdy deal with the insurance coverage sector.”

Talking concerning the current GST discount and the insurance coverage modification invoice, he mentioned, “Key reforms embrace GST discount and the insurance coverage modification invoice (December), which launched 100% FDI, granted extra powers to regulators, and lowered web price necessities for insurers.”

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The federal government just lately introduced a discount in GST on particular person life and medical insurance from 18 per cent to nil, efficient September 22, 2025. All particular person life insurance coverage (Time period, ULIP, Endowment) and medical insurance (Particular person, Household Floater, Senior Citizen) insurance policies are actually exempt from GST, serving to insurance coverage corporations move extra financial savings to you.

This transfer is meant to make important monetary safety extra inexpensive for most people. “The federal government can also be pushing insurance coverage corporations to rethink expense allocation and enhance the standard of companies, notably concerning distribution prices,” mentioned Pant within the interview.

Speaking concerning the capex improve introduced in Price range 2026. He mentioned, “The funds elevated capital expenditure (capex) from 11.4 to 12.2 lakh crore.”

Pant views this as a major enchancment, particularly given the 97 per cent capex utilisation within the earlier 12 months, which has a multiplier impact on the economic system and infrastructure growth. He additionally highlights the federal government’s administration of fiscal deficit and borrowing ranges whereas growing capex as “actually considerable.”

Speaking concerning the financial outlook, he mentioned, “The GDP development fee for FY26-27 is projected at 7.4%, an improve from 6.5%. Regardless of constructive financial indicators, there was market volatility and a weakening rupee following worldwide commerce offers.”



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