New Delhi, India : In a major step toward economic liberalization and energy reform, the Modi government has approved 100% foreign direct investment (FDI) in the insurance sector and cleared the Atomic Energy Bill, 2025, marking the most significant overhaul of India’s nuclear framework since 1962.
The decision to raise the FDI cap from 74% to 100% will be implemented through the Insurance Laws (Amendment) Bill, 2025. The move is aimed at attracting large-scale foreign capital, improving insurance penetration, and strengthening the financial health of insurers by enabling greater access to global expertise and long-term funding.
Alongside this, the Union Cabinet cleared the Atomic Energy Bill, 2025, also known as the SHANTI Bill, opening the door for greater private sector participation in nuclear energy projects while retaining strategic and regulatory control with the government. Officials described the reform as the biggest transformation of India’s nuclear sector since the Atomic Energy Act of 1962.
The nuclear reform is expected to accelerate clean energy generation, enhance energy security, and support India’s climate commitments amid rising power demand. Together, the two landmark approvals reflect the Narendra Modi-led government’s focus on modernizing legacy sectors and positioning India as a more attractive destination for global investment.
