India has just approved a major policy — the foreign ownership cap in the insurance industry has been lifted from 74% directly to 100%. This decision was passed by both houses of Parliament in mid-December and is seen by industry insiders as an important milestone in India's financial liberalization.

The background is as follows: India's insurance market is one of the fastest-growing in the world, but it has long been restricted by foreign investment limits. This reform breaks through that barrier, aiming to attract more international capital inflows. From the broader perspective of the financial services industry, this is also the boldest policy adjustment in over a decade.

Why is this worth paying attention to? The global financial markets are entering a reallocation phase. Policies on opening emerging markets, central bank attitudes, and regulatory frameworks are all influencing capital flows. India's move reflects the fierce competition among emerging economies to attract global capital and has an indirect impact on the risk asset allocation of the entire financial market. Especially in the context of tightening global liquidity, such policy signals often trigger market sentiment fluctuations.