<h1>India's Insurance Sector Set for Growth with FDI Cap Increase from 49% to 74%, Boosting Capital and Options.</h1> The proposal to increase the foreign direct investment (FDI) cap in India's insurance sector from 49% to 74% is expected to attract overseas capital and enhance insurance penetration, according to experts. This move, announced in the 2021 Budget, aims to bring significant capital inflows, offering more product options at reduced costs. It may lead to foreign partners in joint ventures increasing ownership and new investors entering the market. However, experts caution that foreign investors might proceed cautiously, awaiting clarity on regulatory conditions and potential complexities related to board control and dividend payments.