2026 for January 1970

New Insurance Bill 2025 Explained: 100% FDI, IRDAI Powers and Key Omissions

February 4, 2026

New Insurance Bill 2025 Latest News

The Union Cabinet has approved the Sabka Bima Sabki Raksha (Amendment of Insurance Laws) Bill, 2025, paving the way for its introduction in Parliament during the Winter Session.
The Bill proposes major reforms to India’s insurance framework by amending the Insurance Act, 1938, LIC Act, 1956, and IRDAI Act, 1999, aiming at modernisation, expanded insurance coverage, and stronger regulatory oversight.
Key positives include the long-awaited provision for 100% FDI in insurance.
However, several industry demands—such as the introduction of a composite licence—have been excluded or diluted, leading to mixed reactions from stakeholders.
Overall, the Bill seeks to balance industry growth, consumer protection, and broader financial sector reforms, and is expected to generate significant parliamentary debate.

Key Provisions of the New Insurance Bill

The Union Cabinet has approved a major change in India’s insurance rules by allowing full foreign ownership in insurance companies.
The decision aims to bring more capital, improve competition, and strengthen customer services across the sector.
The Bill advances liberalisation, regulatory capacity, and ease of doing business in insurance, while strengthening policyholder protection.

100% Foreign Direct Investment (FDI) in Insurance

Raises FDI cap from 74% to 100% in Indian insurance companies.
Aims to attract long-term foreign capital, enhance insurance penetration, promote technology transfer, and support the goal of ‘Insurance for All by 2047’.
Expected impacts: greater competition, product innovation, customer-centric services, and adoption of global best practices in underwriting, risk management, and digital claims.

Easing Entry for Foreign Reinsurers

Reduces Net Owned Funds (NOF) requirement for foreign reinsurers from ₹5,000 crore to ₹1,000 crore.
Addresses a long-standing demand to widen participation beyond the public sector GIC Re.
Expected to boost reinsurance capacity, competition, and risk diversification in India.

Enhanced Powers for IRDAI

Grants IRDAI disgorgement powers to recover wrongful gains—bringing it closer to SEBI’s enforcement toolkit.
Introduces a one-time registration for insurance intermediaries to simplify compliance.
Raises the threshold for IRDAI approval of equity transfers from 1% to 5%, easing business operations.
Mandates a formal SOP for regulation-making and clear penalty criteria to improve transparency, predictability, and consistency.

Greater Operational Autonomy for LIC

Allows LIC to set up new zonal offices without prior government approval, enabling faster expansion and administrative efficiency.
Permits restructuring of overseas operations in line with host-country laws, strengthening LIC’s global footprint.
Overall goal: modernise LIC’s governance and enhance competitiveness domestically and internationally.

What the Insurance Amendment Bill Leaves Out

No Composite Licence: A Major Miss
- The Bill is expected to exclude composite licences, a long-pending industry demand.
- Currently, insurers are confined to strict silos: life insurers cannot sell non-life products and vice versa.
- A composite licence would have allowed a single insurer to offer life, health, and general insurance under one roof.
- Its absence preserves long-standing structural rigidities, limits bundled offerings, and curbs competition, despite global best practices favouring integrated models.
No Reduction in Capital Norms for New Entrants
- The Bill is unlikely to lower minimum capital requirements (₹100 crore for insurers, ₹200 crore for reinsurers).
- High entry barriers continue to deter small, niche, regional, and specialised insurers.
- Lower capital norms could have boosted insurance penetration, especially in rural areas, among gig workers, MSMEs, and low-income households.
- The omission is seen as a setback for financial inclusion and innovation.
Dropped Proposals from Earlier Drafts
- Several reforms discussed in earlier versions appear missing:
  - Permission for insurers to distribute other financial products (mutual funds, loans, credit cards).
  - Greater flexibility in investment norms to improve policyholder returns.
  - Allowing individual agents to sell policies of multiple insurers, beyond the current one-life–one-general restriction.
No Provision for Captive Insurance Companies
- The Bill is silent on allowing large corporations to set up captive insurers.
- A captive insurance company is a wholly-owned subsidiary created by a parent company to insure its own risks.
- Captives are widely used globally to manage complex risks, reduce insurance costs, and improve underwriting control.
- Their exclusion delays modernisation of India’s corporate risk-management ecosystem.

Conclusion

While the Bill delivers key reforms like 100% FDI and stronger regulation, it stops short of deeper structural changes.
The absence of composite licences, lower capital norms, and captives represents missed opportunities to accelerate competition, inclusion, and innovation in India’s insurance sector.

Source: IE | IT

New Insurance Bill 2025 FAQs

Q1: What is the Sabka Bima Sabki Raksha Bill, 2025?

Ans: It is an amendment bill reforming insurance laws to modernise the sector, expand coverage, strengthen regulation, and align with the goal of Insurance for All by 2047.

Q2: What is the biggest reform introduced in the Bill?

Ans: The Bill raises the FDI limit in insurance companies from 74% to 100%, enabling full foreign ownership and attracting long-term global capital and technology.

Q3: How does the Bill strengthen IRDAI?

Ans: It grants IRDAI disgorgement powers, simplifies intermediary registration, raises equity transfer thresholds, and mandates transparent rule-making and penalty frameworks.

Q4: What operational changes does the Bill make for LIC?

Ans: LIC can open zonal offices without government approval and restructure overseas operations, improving administrative efficiency and strengthening its global presence.

Q5: What are the major omissions in the Bill?

Ans: The Bill excludes composite licences, reduced capital norms for new insurers, captive insurance companies, and multi-insurer agency permissions, limiting deeper structural reform.

India-U.S. Trade Deal 2026 – Strategic Significance

February 4, 2026

Trade Deal 2026 Latest News

India has committed to importing goods worth $100 billion annually from the U.S. for five years as part of a broader trade understanding that also involves significant tariff reductions.

Background: India-U.S. Trade Relations

India and the United States share a rapidly expanding trade relationship, shaped by strategic convergence, supply chain realignments, and geopolitical considerations.
The U.S. is India’s largest trading partner, accounting for a substantial share of India’s exports in services, pharmaceuticals, engineering goods, and IT.
However, trade ties have also witnessed friction, particularly over tariffs, market access, digital trade, and agriculture.
In August 2025, the U.S. raised tariffs on Indian goods to 50%, citing trade imbalances.
This escalation set the stage for renewed negotiations aimed at stabilising bilateral trade while protecting domestic interests.

Key Features of the India-U.S. Trade Deal

Large-Scale Import Commitment
- India has committed to importing $100 billion worth of U.S. goods annually for five years, more than double the $45.62 billion imported in FY25. The imports will primarily include:
  - Energy products (oil, gas, coal), Aircraft and aircraft parts, Technology and high-value manufactured goods, Precious metals, Nuclear-related equipment and Selected agricultural products
Tariff Reduction by the United States
- As part of the understanding, the U.S. agreed to reduce tariffs on Indian goods to 18%, down from the earlier 50%.
- This rollback improves market access for Indian exporters and restores competitiveness in sectors such as engineering goods, textiles, and auto components.
Protection of Sensitive Sectors
- Despite opening its market to a wide range of U.S. products, India has maintained explicit protection for sensitive sectors, including:
  - Genetically modified agricultural products, the dairy sector, Poultry, maize, cereals, and corn
- This calibrated approach reflects India’s long-standing policy of shielding small farmers and food security from external shocks.

Agriculture and Market Access Framework

India has allowed quota-based or limited access for select agricultural commodities such as cotton, pulses, chestnuts, and onions.
Market access has also been extended to apples, wine, spirits, and beer, products already permitted under trade agreements with other partners like the EU and New Zealand.
The government has consistently reiterated that no compromise has been made on farmer welfare.

Strategic and Economic Rationale

Addressing Trade Imbalances
- The deal aims to reduce persistent U.S. trade deficits in goods, particularly in agriculture.
- For India, the arrangement helps ease tariff pressure while ensuring continuity of access to the U.S. market.
Energy Security and Diversification
- Large-scale energy imports from the U.S. support India’s energy diversification strategy, reducing overdependence on volatile regions and strengthening long-term supply stability.
Geopolitical Significance
- Beyond economics, the deal reinforces India-U.S. strategic alignment amid shifting global trade patterns, decoupling pressures, and competition with China.
- Trade is increasingly being used as a tool of diplomacy and strategic reassurance.

Concerns and Criticisms

Fiscal and Trade Deficit Risks
- Committing to fixed import values may constrain India’s trade flexibility and widen the merchandise trade deficit if exports do not grow proportionately.
Farmer and MSME Concerns
- Farmer groups have expressed apprehensions that surplus U.S. agricultural produce could eventually seek deeper access to Indian markets, affecting domestic prices and livelihoods.
Absence of a Formal FTA
- Despite its scale, the arrangement stops short of a full-fledged Free Trade Agreement (FTA), leaving uncertainties about dispute resolution mechanisms and long-term enforceability.

Way Forward

India will need to closely monitor implementation, ensure safeguard mechanisms remain robust, and simultaneously push for export expansion in services, manufacturing, and technology.
Strengthening domestic competitiveness and productivity will be critical to maximising gains from the deal.

Source: TH | IE

[youtube url="https://www.youtube.com/watch?v=qdBsX1XaawY" width="560" height="315"]

Trade Deal 2026 FAQs

Q1: What is the core commitment under the India–U.S. Trade Deal?

Ans: India will import $100 billion worth of U.S. goods annually for five years.

Q2: Which sectors dominate India’s planned imports from the U.S.?

Ans: Energy, aircraft parts, technology goods, precious metals, and select agricultural products.

Q3: How did the U.S. respond to tariffs under the deal?

Ans: The U.S. reduced tariffs on Indian goods from 50% to 18%.

Q4: Are Indian farmers protected under the agreement?

Ans: Yes, sensitive sectors like dairy, GM crops, and staples remain protected.

Q5: Is this deal a formal Free Trade Agreement?

Ans: No, it is a large trade understanding, not a comprehensive FTA.

Solid Waste Management Rules 2026: Key Changes Explained

February 4, 2026

Solid Waste Management Rules 2026 Latest News

The Solid Waste Management Rules, 2026, notified by the Union Ministry of Environment, Forest and Climate Change, will come into force on April 1, 2026, replacing the 2016 framework.
The new rules comprehensively overhaul waste management by urban and rural local bodies, emphasising waste reduction, reuse, segregation, and at-source processing.
By discouraging dependence on large landfills and dumping yards, the rules aim to promote decentralised, sustainable, and circular approaches to managing India’s growing solid waste challenge.

Rationale Behind the Introduction of New Rules

As per Central Pollution Control Board’s 2023-24 data, India is facing a severe solid waste management crisis:
- Annual waste generation: over 620 lakh tonnes
- Daily waste generation: around 1.85 lakh tonnes
- Daily collection: 1.79 lakh tonnes
- Daily processing/treatment: 1.14 lakh tonnes
- Daily landfilling: 39,629 tonnes
Despite the Solid Waste Management Rules, 2016, large quantities of waste continue to be poorly segregated and dumped in landfills, leading to environmental and public health risks.
To address this, the 2026 Rules aim to:
- Reduce dependence on landfills
- Improve segregation and accountability
- Shift towards a circular economy, where waste is treated as a resource
- Strengthen compliance through penalties and digital monitoring

How Are the 2026 Rules Different from the 2016 Rules

While retaining the core principles of segregation, recycling, and scientific disposal introduced in 2016, the 2026 Rules introduce stricter obligations, expanded segregation, and stronger enforcement mechanisms.

Waste Hierarchy Introduced

The Solid Waste Management Rules, 2026 lay down a clear waste hierarchy that prioritises prevention and minimisation of waste over disposal.
The hierarchy follows the sequence of prevention, reduction, reuse, recycling, recovery, with disposal permitted only as a last resort, signalling a move away from landfill-dependent waste management.

Four-Way Waste Segregation

To operationalise this hierarchy, the rules introduce a four-way segregation system, expanding the earlier wet–dry classification.
- Wet waste: biodegradable household waste
- Dry waste: recyclable materials such as paper, plastic, metal, and glass
- Sanitary waste: items like sanitary napkins, tampons, and condoms
- Special-care waste: hazardous or sensitive items including medicines, paint cans, bulbs, and tube lights
Urban local bodies are mandated to support segregation through appropriate infrastructure.
This includes green bins for wet waste, blue bins for dry waste, and red bins for sanitary waste, particularly in public toilets where such waste is generated.

Enhanced Responsibilities of Bulk Waste Generators

Definition of Bulk waste Generators - Entities meeting any one of the following:
- Built-up area of 20,000 sq m or more
- Water consumption of 40,000 litres/day or more
- Waste generation of 100 kg/day or more
Covered entities include:
- Residential societies and gated communities
- Malls, hotels, restaurants
- Colleges, universities, hostels
- Government departments and large townships
New obligations:
- Mandatory segregation at source
- Hand over recyclable waste to authorised entities
- All gated communities, RWAs, hotels and restaurants, and institutions with over 5,000 sq m area must comply within one year
The 2016 Rules had weaker enforcement for bulk generators.

Polluter Pays Principle and Environmental Compensation

Environmental compensation for:
- Failure to register on the centralised portal
- False reporting or forged documents
- Improper waste handling and segregation
Higher landfill fees for mixed or unsegregated waste
Landfilling made financially disincentivising
Role of CPCB: To frame detailed guidelines on compensation and penalties.
- This marks a shift from advisory compliance to deterrence-based regulation.

Centralised Tracking and Digital Monitoring System

Introduction of a centralised online portal to track: Waste generation; Collection; Transportation; Processing; Disposal.
Mandatory registration for:
- Bulk waste generators
- Urban and rural local bodies
- Waste transporters and processors
- Waste pickers
- Railways, airports, SEZs and large authorities
This addresses data gaps and weak monitoring seen under the 2016 Rules.

Impact on Bulk Generators Including Housing Societies

Under the new rules, bulk waste generators are brought under an extended responsibility regime, similar to the Extended Producer Responsibility (EPR) applicable to manufacturers of electronic and plastic products.
This framework will become operational once urban local bodies (ULBs) notify by-laws by March 2027 incorporating provisions of the new rules.

Mandatory Registration and Certification-Based Compliance

Bulk generators—such as housing societies, colleges, large townships, commercial complexes and institutions—will be required to:
- Register on a centralised online portal
- Submit mandatory waste accounting data
- Follow certification-based compliance, replacing the earlier self-declaration model
This system introduces verifiable accountability for waste generation and handling.

Segregation and On-Site Waste Processing Obligations

Mandatory four-way segregation of waste (wet, dry, sanitary and special-care)
Strong emphasis on at-source processing of wet waste, preferably through:
- On-site composting, or
- Other approved decentralised alternatives

Alternative Compliance through Certification

Where on-site processing is not feasible, bulk generators may procure compliance certificates from Urban local bodies, or Authorised waste processing facilities.
These certificates will serve as proof that waste has been scientifically processed.

Annual Reporting and Penalties

Annual returns to be filed by June 30 each year
Returns must detail: Quantity of waste generated; Mode of processing; Certificates procured.
Non-compliance will attract environmental compensation

Implications of SWM Rules, 2026 for Landfills

The Solid Waste Management Rules, 2026 seek to end India’s long-standing dependence on landfills.
Under the new framework, landfills are to be used only as a last option, and exclusively for non-usable, non-recyclable, and non-energy-recoverable waste.
This marks a decisive shift away from dumping mixed waste, which has historically led to large landfill mounds and severe environmental contamination.

Mapping and Remediation of Legacy Landfills

All urban local bodies (ULBs) are mandated to:
- Map existing legacy landfills and dumpsites by October 31, 2026
- Prepare time-bound action plans for their remediation
Remediation methods include:
- Bioremediation: use of bacteria and microbes to reduce waste volume and odour
- Biomining: scientific excavation of old waste to recover usable materials and reduce landfill mass
These measures aim to reclaim land, reduce pollution, and eliminate long-standing garbage mountains.

Energy Recovery from High-Calorific Waste

The new rules mandate that waste with a calorific value of 1,500 kcal/kg or more must be diverted for energy recovery
Methods include:
- Refuse-Derived Fuel (RDF) production
- Co-processing in cement kilns and thermal power plants
High-calorific waste includes plastic waste, agricultural residues, and kitchen waste, which can substitute conventional fossil fuels.
Industries have been assigned progressive targets for replacing solid fossil fuels with RDF:
- 6% substitution initially
- Scaling up to 15% substitution within six years
This creates assured demand for waste-derived fuels and strengthens the waste-to-energy ecosystem.

Source: IE | PIB

Solid Waste Management Rules 2026 FAQs

Q1: What are the Solid Waste Management Rules 2026?

Ans: The Solid Waste Management Rules 2026 replace the 2016 framework, focusing on waste reduction, segregation, decentralised processing, and reduced landfill dependence.

Q2: Why were the Solid Waste Management Rules 2026 introduced?

Ans: The Solid Waste Management Rules 2026 address poor segregation, landfill overload, and environmental risks amid India’s rapidly rising urban waste generation.

Q3: How are the Solid Waste Management Rules 2026 different from 2016 rules?

Ans: The Solid Waste Management Rules 2026 introduce four-way segregation, digital monitoring, polluter-pays penalties, and stricter obligations for bulk waste generators.

Q4: What do the Solid Waste Management Rules 2026 mean for housing societies?

Ans: Under the Solid Waste Management Rules 2026, housing societies must segregate waste, register on a central portal, process wet waste on-site, and file annual returns.

Q5: How do the Solid Waste Management Rules 2026 impact landfills?

Ans: The Solid Waste Management Rules 2026 restrict landfills to last-resort use, mandate remediation of legacy dumps, and promote waste-to-energy solutions.

Frozen Embryo Donation Case: ART Act Rules Under Court Review

February 4, 2026

Frozen Embryo Donation Latest News

The Delhi High Court has issued notice on a PIL questioning whether the law can mandate the destruction of viable frozen embryos instead of allowing their donation to infertile couples, even when all parties consent.
The plea challenges provisions of the Assisted Reproductive Technology (Regulation) Act, 2021 and its Rules, which allow embryos to be created using donor sperm and eggs but prohibit donating unused frozen embryos to another couple for reproductive use.
Under the existing framework, unused frozen embryos can be stored for up to 10 years. After that, they must either be donated for research or be “allowed to perish”, but cannot be transferred to another infertile couple.
The plea argues that forcing viable embryos to perish is ethically irrational when willing recipient couples exist.
The petition questions why the law permits some forms of non-genetic parenthood, such as donor sperm or eggs, while blocking embryo donation, calling this inconsistency a possible legislative oversight.

What the Law Allows

The Assisted Reproductive Technology (ART) Act, 2021 permits altruistic donation of sperm and eggs under regulated conditions.
It also allows donor-assisted IVF, including double-donor IVF, where embryos created from donor sperm and donor eggs are implanted in a commissioning couple.
In donor-assisted and double-donor IVF, the child has no genetic link with either parent. The law explicitly recognises and permits this form of non-genetic parenthood.
What the law prohibits - Despite allowing donor-based embryo creation, the law does not permit the donation of surplus frozen embryos to another infertile couple for reproductive use.
Why surplus embryos exist - IVF procedures typically create multiple embryos to improve pregnancy success rates. Not all embryos are implanted, and many remain cryopreserved when couples decide not to pursue further pregnancies.
Where the restriction applies - It is at this post-IVF stage — when embryos remain unused but viable — that the law restricts their transfer to other couples, limiting their fate to storage, research use, or eventual destruction.

How the prohibition works

The law does not expressly ban “embryo adoption”, but the restriction arises from how multiple provisions of the ART Act and its Rules operate together.
Embryos tied to the original couple - Clinics are required to preserve unused embryos only for the commissioning couple. They are prohibited from transferring these embryos to any other person or couple.
Limited scope for embryo transfer - Embryo transfer is allowed only when the same couple seeks to use its own embryos for personal reproductive purposes, and that too with regulatory approval. Any third-party use is barred.
Mandatory end-point after 10 years - Under Section 28(2), embryos can be stored for a maximum of 10 years. After this period, embryos must either be:
- allowed to perish, or
- donated to registered research institutions, with consent.
  - There is no legal pathway for donating embryos to another infertile couple for pregnancy.
Consent forms reinforce the restriction - The prescribed consent forms ask couples to choose the fate of embryos in situations like death or separation. However, donation to another couple is not listed as an option, effectively closing that route.

Fresh vs frozen embryos: the core contradiction

The petition highlights a key inconsistency in how the law treats fresh and frozen embryos.
What the law allows with fresh embryos - The ART Act permits embryos created using donor sperm and donor eggs to be transferred to a commissioning couple. In such cases, the child has no genetic link to the parents, which the law explicitly accepts.
Biological equivalence of frozen embryos - Frozen embryos, once thawed, are biologically identical to fresh embryos and are routinely used in IVF treatments with similar success rates.
Different legal treatment - Despite this equivalence, frozen embryos are barred from being transferred to another couple for reproductive use. They are treated as non-transferable once cryopreserved.
Alleged ‘double standard’ - The plea argues that while the law accepts genetic non-linearity in fresh donor embryos, it rejects the same principle for existing frozen embryos — creating what the petitioner calls a legal and ethical inconsistency.

The constitutional challenge to the ART law

The petition questions the validity of the embryo donation ban on constitutional grounds, invoking Articles 14 and 21.

Article 14: equality before law

The plea argues that the law makes an arbitrary distinction between couples allowed to receive fresh donor embryos and those barred from receiving frozen embryos.
In both cases, the child has no genetic link to the parents.
It contends that this classification lacks an intelligible differentia and has no rational link to the objective of the law, thereby violating Article 14.

Article 21: reproductive autonomy

The petition places reproductive choice within the right to life, dignity and privacy.
Decisions on whether and how to have a child through assisted reproduction, it argues, are part of individual decisional autonomy.
Blocking embryo donation intrudes into this freedom.

Compulsory destruction as a core concern

A central objection is the law’s requirement that unused embryos be “allowed to perish” after 10 years if not used by the original couple.
The plea calls this a “legislative absurdity”, since viable embryos must be destroyed even when willing and consenting recipient couples exist.

Why the case matters

The petition highlights the broader social and ethical stakes of the embryo donation debate.
Scale of infertility in India - Infertility affects an estimated 27–30 million couples in India, making access to assisted reproductive options a significant public health issue.
Limits of existing options - IVF is costly and often requires multiple cycles, while traditional adoption is marked by long waiting periods and procedural hurdles. This leaves many couples with few viable choices.
Embryo donation as an alternative - The plea argues that regulated embryo donation could offer a middle path—allowing pregnancy and childbirth for couples who cannot conceive through other means.
Equity and access concerns - It also flags inequality: wealthier couples can seek embryo donation abroad, while others cannot. This, the petition argues, turns reproductive choice into a function of economic privilege rather than medical need.

Source: IE

Frozen Embryo Donation FAQs

Q1: What is the frozen embryo donation case before the Delhi High Court?

Ans: The frozen embryo donation case challenges ART Act provisions that require unused frozen embryos to perish or be donated for research instead of being donated to infertile couples.

Q2: Why does the ART Act restrict frozen embryo donation?

Ans: The ART Act allows storage of embryos for 10 years but does not provide a legal framework for frozen embryo donation to another couple for reproductive use.

Q3: How does the law treat fresh versus frozen embryos differently?

Ans: Fresh donor embryos can be transferred to commissioning couples, but frozen embryo donation is prohibited despite biological equivalence, creating a legal inconsistency.

Q4: What constitutional rights are raised in the frozen embryo donation challenge?

Ans: The plea invokes Articles 14 and 21, arguing that banning frozen embryo donation violates equality, reproductive autonomy, dignity, and decisional privacy.

Q5: Why does frozen embryo donation matter for infertile couples in India?

Ans: Frozen embryo donation could provide a regulated, affordable option for infertile couples, reducing dependence on costly IVF cycles and lengthy adoption processes.