The Union Budget, 2021-22 increased the FDI limit in the Insurance sector from 49% to 74%. This move aims to attract more foreign investment into the insurance industry and promote its growth and development in India. Let's explore the details of this decision.

Increasing FDI limit in Insurance sector:
The Union Budget, presented by the Finance Minister, announced the increase in the Foreign Direct Investment (FDI) limit in the Insurance sector from 49% to 74%. This decision is a part of the government's efforts to boost the insurance industry and attract more foreign capital into the country.

Benefits of increasing FDI limit:
1. Enhanced capital inflow: Increasing the FDI limit allows foreign investors to have a higher stake in Indian insurance companies. This leads to increased capital inflow into the sector, providing a much-needed boost to its growth and expansion.

2. Improved access to capital: With higher FDI limits, insurance companies can attract more foreign funds, which can be utilized for improving infrastructure, technology, and customer service. This, in turn, enhances the overall efficiency and competitiveness of the insurance industry.

3. Strengthening insurance companies: Higher FDI limits can help insurance companies strengthen their financial position by accessing capital from global markets. This enables them to expand their product offerings, enhance risk management capabilities, and improve their ability to settle claims promptly.

4. Job creation and economic growth: The increased FDI limit can lead to the establishment of new insurance companies and the expansion of existing ones. This, in turn, creates job opportunities and contributes to economic growth by increasing investments in the sector.

5. Technology transfer and innovation: Foreign investors bring not only capital but also expertise and technological advancements to the Indian insurance industry. This results in the transfer of knowledge and innovation, leading to improved products, services, and customer experience.

Conclusion:
The decision to increase the FDI limit in the Insurance sector from 49% to 74% in the Union Budget, 2021-22 is expected to attract more foreign investment into the industry. This move is aimed at promoting the growth and development of the insurance sector in India and reaping the benefits of enhanced capital inflow, improved access to capital, strengthened insurance companies, job creation, and technology transfer.