Cabinet Clears Bill Seeking 100% FDI In Insurance, Also Opens Nuclear Sector For Private Players

(MENAFN- KNN India) New Delhi, Dec 13 (KNN) The Union Cabinet chaired by Prime Minister Narendra Modi has cleared the decks for 100% foreign direct investment (FDI) in the insurance sector by giving its nod for the Bill seeking to completely open the sector, multiple media reports said.

In line with an earlier announcement by Finance Minister Nirmala Sitharaman in her Budget 2025 speech, the Bill has proposed amendments to various provisions of the Insurance Act, 1938, including raising FDI in the insurance sector to 100%.

In her Budget speech in February this year, Sitharaman had said that the enhanced FDI limit in insurance will be available for those companies which invest the entire premium in India. She had also promised to review and simplify existing guidelines associated with foreign investment in the insurance sector.

In the key meeting held on December 12, 2025, the Cabinet also approved the Atomic Energy Bill, 2025, branded as SHANTI ( Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India) for allowing greater participation of the private players in the largely considered sensitive sector.

The Modi government has set a target of 100 GW nuclear power capacity by 2047, an increase of nearly 11-fold from current level, while also positioning nuclear energy as a major pillar in India's energy mix.

Nuclear power generation in the country's total electricity generation currently stands at about 3%, offering a huge opportunity to scale it up.

Although India operates the sixth largest nuclear reactor fleet in the world, the present installed capacity of nuclear power in the country stands only at 8.78 GW (excluding Rajasthan Atomic Power Station or RAPS Unit-1, 100 MW).

The present capacity is projected to increase to 22.38 GW (excluding RAPS-1, 100 MW) by 2031-32 on progressive completion of projects at various stages of implementation.

As per the current policy, FDI in atomic energy is prohibited. Government has been mulling proposals to amend the existing nuclear law and allow private sector participation in atomic energy.

The Atomic Energy Bill, 2025 which has been cleared by the Cabinet seeks to open the doors for private participation in the sector.

(KNN Bureau)

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