The Indian cabinet has approved major reforms in atomic energy laws and fully opened the insurance sector to foreign investors, according to two government sources on Friday. These crucial policy decisions aim to attract billions of dollars into these vital sectors.
India plans to increase its nuclear power capacity twelvefold by 2047. To achieve this, the country is easing regulations to dismantle a longstanding state monopoly and address strict liability clauses, thereby allowing private involvement and attracting foreign technology providers.
The nuclear sector changes are part of efforts to boost nuclear capacity to 100 gigawatts by 2047, reducing coal reliance and fulfilling climate commitments.
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In the insurance sector, the government suggests eliminating the foreign ownership cap in Indian insurance firms, currently at 74%.
For 100% foreign direct investment eligibility, at least one of the company’s chair, managing director, or chief executive must be an Indian resident, a third government source indicated.
The government has also abandoned an earlier proposal for a unified insurance company license, the source noted.
A unified, or composite, license would have enabled insurers to offer life, general, and health insurance through a single entity.
Currently, life insurers are restricted from selling health insurance products, while general insurers can offer products from health to marine insurance.
The government believes Indian insurance companies are not yet prepared for a composite license system, the source mentioned.
Both legislative changes are slated for approval during the current winter parliamentary session.
