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FDI: Entry and ownership rule
On 2 March 2015, India increased the FDI limit in the insurance sector from 26% to 49%. This is a cumulative investment limit i.e. the total investment by all classes of foreign investors cannot be more than 49%. Additionally, investments up to 26% are allowed under the automatic route i.e. no approval is required while investments beyond 26% and up to 49% will require such prior approval.
On 23 March 2016, the requirement for government approval for FDI up to 49% was withdrawn (see related State Act).
On 25 March 2021, the investment limit was increased to 74% (see related State Act).
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