Insurance Amendment Bill: A major and important decision was taken on Friday at the Union Cabinet meeting chaired by PM Modi. The government approved a historic bill related to the insurance sector, which now increases the limit for foreign direct investment (FDI) in insurance companies to 100%. This decision also approved several structural reforms to further strengthen the insurance sector. The government hopes this will increase foreign investment in India’s insurance market, intensify competition, and provide better customer services. To date, approximately ₹82,000 crore has been invested in the insurance sector through FDI.

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What is the purpose of the bill?

The main objective of this bill is to amend three key insurance laws: the Insurance Act, the LIC Act, and the IRDAI Act. These changes will make it easier for companies to raise capital, simplify the licensing process, and strengthen governance across the sector. This proposal was first proposed by Finance Minister Nirmala Sitharaman in February when she presented the budget for the financial year 2025-26. She stated that foreign investment regulations would be reviewed and simplified. The new FDI limit will only benefit companies that invest their entire premium in India.

MNREGA Renamed

Another major decision was taken at the Cabinet meeting. The renaming of the Mahatma Gandhi National Rural Employment Guarantee Act (MNREGA) has been approved. The scheme will now be known as the Pujya Bapu Grameen Rojgar Yojana (Pujya Bapu Grameen Rojgar Yojana). This scheme is one of the largest rural employment schemes in the country.

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SHANTI Bill Related to Nuclear Energy Also Passed

In addition, the central government has also approved the Atomic Energy Bill, 2025, a key law related to nuclear energy, called SHANTI. SHANTI stands for Sustainable Harnessing of Advancement of Nuclear Energy for Transforming India. This bill is being considered an important step towards achieving India’s target, under which the country wants to achieve 100 GW nuclear power capacity by 2047.