Relevance: GS-3 (Economy—FDI, Financial Sector), GS-3 (Energy Security—Nuclear Power)
Source: PIB, Ministry of Finance, DAE briefings

News

The Union Cabinet has approved two major reforms:

  1. Raising Foreign Direct Investment in insurance companies from 74% to 100%.
  2. Introducing the SHANTI Bill, 2025, allowing private participation in India’s civil nuclear sector for the first time.

100% FDI in Insurance

  • Full foreign ownership now permitted in Indian insurance companies.
  • Aims to boost capital inflow, improve product innovation, and deepen insurance penetration.
  • Safeguard: At least one among CEO / MD / Chairperson must be an Indian citizen.
  • Expected sectoral growth: Seven percent annually over the next five years.

Private Sector Entry into Nuclear Energy – SHANTI Bill

  • Allows private companies to participate in nuclear power generation, atomic mineral exploration, fuel fabrication, and equipment manufacturing.
  • Supports India’s long-term target of 100 gigawatts of nuclear capacity by 2047.
  • Proposes new institutional mechanisms like a nuclear safety authority and nuclear liability tribunal.
  • Complements the Nuclear Energy Mission promoting Small Modular Reactors, with ₹20,000 crore allocated.

Significance 

These reforms aim to attract investment, accelerate technology adoption, and strengthen India’s long-term economic and clean-energy security.

UPSC Prelims Value Box

Small Modular Reactors (SMRs):Compact nuclear reactors (typically below 300 megawatts) offering lower costs, faster construction, and suitability for remote or industrial regions.

Atomic Energy Act, 1962: Previously allowed only government entities to engage in nuclear energy; the SHANTI Bill proposes expanding this to controlled private participation.

Q. Consider the following statements:

  1. Under India’s new policy, one hundred percent foreign ownership is permitted in insurance companies with no conditions attached.
  2. The SHANTI Bill allows private entities to participate in multiple stages of civil nuclear energy, including power generation.
  3. The Nuclear Energy Mission includes support for Small Modular Reactors developed within India.

How many of the above statements are correct?
A. One only
B. Two only
C. All three
D. None

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