Akhilesh Yadav slams Centre over allowing 100% FDI in insurance sector

Samajwadi Party chief criticizes Union Government for allowing 100% FDI in insurance, raising concerns about industry risks.

Samajwadi Party (SP) chief Akhilesh Yadav on Thursday (February 27, 2025) slammed the Union Government for allowing 100% FDI in the insurance sector and said the move put the entire industry at risk.

In a post in Hindi on X addressed to Indian policyholders, Mr. Yadav questioned if handing over complete control of a sensitive and crisis-driven industry such as the insurance sector to foreign entities was in the best interest of the nation.

Union Finance Minister Nirmala Sitharaman announced in the Union Budget 2025-26 that the permissible limit for Foreign Direct Investment (FDI) in the insurance sector would be raised from 74% to 100%.

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The move is expected to pave the way for the entry of global insurance giants and substantial foreign investment. Mr. Yadav pointed out that diplomatic relations between countries could fluctuate and, if any disruptions occurred, ensuring accountability of foreign insurers would be a challenge. "Who will insure against this uncertainty?" he asked.

Mr. Yadav warned that while the new provision offered full security to foreign insurance companies, the interests of Indian policyholders remained uncertain.

"Even if these foreign companies reinvest the collected premium within the country, a critical question remains: will they reinvest at least half of their profits in India or take all of it abroad?" he asked.