Mumbai:
The insurers have hailed the Budget 2019-20 presented by finance minister Nirmala Siharaman as inclusive seeking to boost infrastructure and foreign investment with a clear focus to make India a $5tn economy in a few years.
The budget has supported infrastructure investment plan of Rs.100 trillion in five years,giving impetus to a digital economy,has stuck to the path of fiscal prudence with the reduction of the deficit to 3.3%.
According to Atul Sahai, CMD, New India Assurance, the largest general insurance player in the country, the Budget 2019-20 is growth oriented and Investment of Rs 100 lakh crores in infrastructure in the next five years will give an opportunity for insurance sector also to grow.
“FDI of 100 per cent intermediary sector will bring more international expertise and domain expert which will give advantage to customers and insurers as well,'' said Sahai.
Tarun Chugh, MD & CEO, Bajaj Allianz Life said the government’s proposed 100% FDI for insurance intermediaries would make India a more attractive destination for FDI.
This is a positive move for the industry, and may help better penetration of insurance products, he said .
G. Murlidhar, MD & CEO, Kotak Life Insurance said that one would have also expected specific measures to induce growth in long-term financial savings of households, which are critical for long-term investments.
“This budget focuses on fundamentally important elements like affordable housing disinvestment (Rs.1.05 tn target for FY20), environment (promoting manufacturing and purchase of electric vehicles), rural development (“Har Ghar Jal”), and social security (pension benefits extended to 3 cr shop owners), he said.
Anuj Gulati, MD & CEO, Religare Health Insurance said that the increased tax benefits offered on health insurance premiums to all segments of the population, including senior citizens, will urge people to avail the advantages of having a health insurance equipping them with a secure future.
Tax benefit proposals will significantly benefit the middle class comprising of self-employed, small businesses, traders, salaried class, pensioners and senior citizens, he added.
However, Karthik Srinivasan,senior vice president and group head, financial sector ratings,ICRA Ltd, said the absence of any capital infusion plan for the public sector general insurance companies, most of whom require capital to avoid breaching regulatory solvency ratio.