Tapan Singhel, MD&CEO, Bajaj General Insurance& Chairman, General Insurance Council
With the move to allow 100% FDI in insurance, we could see India moving towards a future with 1,000 insurers in the next decade. A larger number of players will bring greater competition, leading to enhanced innovation, customer-centric products, and improved service delivery
The Union Budget 2025-26 is a forward-looking blueprint for growth, resilience, and inclusive development. The focus on strengthening the middle class through enhanced tax exemptions will put more money in people’s hands, boosting consumption, savings, and overall economic momentum.
Investments in infrastructure, financial sector reforms, and digital transformation will further strengthen India’s position as one of the fastest-growing economies in the world.
A key highlight is the opening up of 100 per cent FDI in insurance, which will foster greater competition, bring in global expertise, and drive deeper penetration across the country.
With the move to allow 100% FDI in insurance, we could see India moving towards a future with 1,000 insurers in the next decade. A larger number of players will bring greater competition, leading to enhanced innovation, customer-centric products, and improved service delivery. More insurers mean better awareness, wider choices for consumers, and a stronger push for financial protection across all segments of society.
This reform is not just about increasing capital inflows—it is about reshaping the insurance landscape to ensure that every individual and business has access to risk protection.
As competition intensifies, we will see more transparency, faster claims processing, and stronger trust in the industry. Ultimately, this will drive economic growth, build financial resilience, and create a more inclusive insurance ecosystem for India.”
With India’s vast and diverse population, the need for more insurers is clear—just as developed nations have thousands of players catering to varied needs. Increased competition will enhance customer choice, service quality, and awareness, making insurance more accessible and effective for all.
This Budget reflects a commitment to long-term growth while ensuring financial security, innovation, and economic empowerment for individuals and businesses alike. It is a step towards a more resilient and prosperous India.
“India, with its vast and diverse population, has immense untapped potential in the insurance sector. In many developed economies, thousands of insurance companies operate to serve the varied needs of their citizens. For a country like ours, achieving deeper insurance penetration requires a significant expansion in the number of players in the industry.