Foreign Investment Policies in India

Foreign Investment Policies are for investing directly into production or business in a country by a company or an individual of another country. Investing may be buying a company in another country or expanding operations of the existing business in that country.

Read more
investent plan
Plans starting from ₹1000/month
Max Life
loading...
icici prudential life insurance
loading...
tata aia life insurance
loading...
Best Investment Plans
  • money
    Generate wealth with high returns Earn 1 Cr in maturity with Zero LTCG tax^
  • tax
    Double tax savings^ On premiums (under 80C) and on maturity (under 10(10D))
  • compare
    Compare & choose the best 30+ Plans and 150+ Fund options
We are rated~
rating
6.7 Crore
Registered Consumers
51
Insurance Partners
3.4 Crore
Policies Sold

Top performing plans with High Returns*

Invest ₹10K/month & Get ₹1 Crore returns*

+91
Secure
We don’t spam
Please wait. We Are Processing..
Your personal information is secure with us
Plans available only for people of Indian origin By clicking on "View Plans" you agree to our Privacy Policy and Terms of use #For a 55 year on investment of 20Lacs #Discount offered by insurance company
Get Updates on WhatsApp
We are rated~
rating
6.7 Crore
Registered Consumers
51
Insurance Partners
3.4 Crore
Policies Sold

Foreign Investment in India is governed by the FDI (Foreign Direct Investment) of the GOI (Government of India) and the Foreign Exchange Management Act 1999.

The two main concerns of the FDI policy framework are:

  • To sustain India's impressive economic growth, foreign investments are necessary

  • Protection of sectors that are of strategic interest such as defense and telecommunications

What Is Foreign Direct Investment?

When a company or investor takes ownership of another company in a land other than their own (foreign land), it is known as Foreign Direct Investment.

In layman’s terms, Foreign Direct Investment is the decision of a company or an investor to acquire a certain amount of shares of another company in some other country to expand their existence in a foreign land. 

How Does It work?

The government has now allowed Foreign Institutional Investors (FII) and Non-Resident Indians (NRIs) to invest in the Insurance sector through an automatic route within the 26% cap on FDI (Foreign Direct Investment). A senior official at DIPP (Department of Industrial Policy and Promotion) said that foreign investment was already allowed in third-party administrators, insurance, insurance brokers as per the Insurance Act but now it has been defined in FDI policy. This shall attract more investors to the market. 

Previous Policy  Revised Policy
26% (FDI) 26% (FDI+FII)

The foreign investors would have to obtain the necessary license from IRDA (Insurance Regulatory and Development Authority) for undertaking the activities of Insurance. Private sector banking FDI norms would be applicable for bank-promoted insurance companies. 74% FDI including investments by FIIs in private sector banks has been allowed by Banking sector FDI norms. In this sector, the government route is followed from 49% to 74%, and the automatic route is followed up to 49%. 

Most of the Insurance companies in the country are joint ventures between foreign and Indian companies. Due to political opposition, the government is unable to raise the FDI limit in the sector to 49%. The limit in the case of the Insurance sector is mentioned in the law so it would need to be raised through the parliamentary process, unlike most sectors where limits are mentioned in the policy of FDI. 

It is a long-term commitment to invest in India as these changes have raised certain issues which need to be resolved further like a broader FDI policy and the narrow definition of ownership. The stability in government for the next five years signified by the near majority win by the ruling UPA government is a piece of good news on the Indian front. To further liberalize the FDI policy over the next five years, the current government will continue its economic reform agenda.

Past 5 Year annualised returns as on 01-05-2024

^The tax benefits under Section 80C allow a deduction of up to ₹1.5 lakhs from the taxable income per year and 10(10D) tax benefits are for investments made up to ₹2.5 Lakhs/ year for policies bought after 1 Feb 2021. Tax benefits and savings are subject to changes in tax laws.

*All savings are provided by the insurer as per the IRDAI approved insurance plan.

Tax benefit is subject to changes in tax laws. Standard T&C Apply
~Source - Google Review Rating available on:- http://bit.ly/3J20bXZ

^^The information relating to mutual funds presented in this article is for educational purpose only and is not meant for sale. Investment is subject to market risks and the risk is borne by the investor. Please consult your financial advisor before planning your investments.

#The lumpsum benefit is calculated if policyholder invested ₹10000 monthly for 10 years in the fund with a policy term of 20 years. This Point To Point past performance data of last 10 years has been used to illustrate a scenario for the customers benefit. It is assumed that the past 10 years returns would have also been delivered in last 20 years. This is not guaranteed and not in anyway indicative of what the customer may actually get 20 years from now. The investment is subject to market risk and the risk is borne by the policyholder.

Become a crorepati-1
Invest More Get More!
You Get
₹1 Crores*
You Invest
₹10K/month
You Get
₹80 Lakhs*
You Invest
₹8K/month
You Get
₹50 Lakhs*
You Invest
₹5K/month
capital guarantee
Investment Calculator
  • One time
  • Monthly
/ Year
Sensex has given 10% return from 2010 - 2020
You invest
You get
View plans

Investment plans articles

Recent Articles
Popular Articles
Lumpsum Investment

21 May 2024

Investments are broadly classified into two categories: the SIP
Read more
Government Bonds

09 May 2024

Government bonds are debt securities issued by a government to
Read more
Monthly Investment Plan

07 May 2024

Monthly Investment Plans are financial products where investors
Read more
SBI NRI Account

07 Feb 2024

The State Bank of India (SBI) NRI account is designed for
Read more
How Thanks giving and Black Friday Affect The Indian Stock Market?

23 Nov 2023

Black Friday and Thanksgiving mark the beginning of the holiday
Read more
20 Best Investment Options in India in 2024
Investing in the best investment options in India helps to maximize your returns and fulfill your immediate and
Read more
Best NRE Savings Accounts for NRIs in 2024
India is a growing economy and is getting a lot of global recognition these days. It has shown immense growth in
Read more
Short Term Investments Options
Short-term investments are financial assets that can be easily converted to cash within a short period, ranging
Read more
How to Change Mobile Number in Post Office Account Online?
Indian Post Payment Bank (IPPB) is the banking division of the Department of Post (Ministry of Communications)
Read more
Post Office Senior Citizen Savings Scheme (SCSS) 2024
The Post Office Senior Citizen Savings Scheme (SCSS) is a government- backed scheme designed specifically for
Read more

top
Close
Download the Policybazaar app
to manage all your insurance needs.
INSTALL