Increasing the FDI limit to 74% from the current 49% in the insurance sector is a welcome move by the government which was long overdue, says BFSI leaders on the Union Budget 2021. The industry is of the views that increase of FDI limit in insurance is a favourable move considering the skewed nature of insurance penetration in India.
The increased FDI limit will offer true metamorphosis for the sector as capital infusion will help businesses expand, aligned strongly with the government’s vision of financial inclusion. Here are the views of top industry leaders on Budget 2021.
Murali Iyer, CEO and Principal Officer, InsureNearby
Increasing the FDI limit to 74% from the current 49% in the insurance sector is a welcome move by the government which was long overdue. Providing equal rights to foreign partners will help open up the sector while offering the much-needed capital infusion.
This will provide a huge fillip to employment opportunities besides helping boost insurance penetration, especially in the hinterlands of the country. Additionally, the move will also help Indian shareholders to find new buyers easily, thereby eyeing a smooth exit.
At just about 4%, India has one of the lowest insurance coverage ratios among the most populous nations and this amendment is likely to put the industry back on the growth track from the present stagnation period.
Upscaling FDI in the industry will also encourage innovation-backed tools and technologies that will help drive inclusivity at the bottom of the pyramid. This is likely to boost growth and transformation and will put the insurance sector at par with the banking sector.
Rajesh Jha, Co-founder & Director, PayNearby
The increase of FDI limit in insurance is an extremely favourable move for the industry. Considering the skewed nature of insurance penetration in the country, we require innovative, cost-effective tools to cater to the target audience of which 90% is still unbanked and underbanked. The increased FDI limit will offer true metamorphosis for the sector as capital infusion will help businesses expand, aligned strongly with the government’s vision of financial inclusion.
Kounal Gupta, Founder & CEO, Henry Harvin Education
A National Digital Educational Architecture (NDEAR) has been announced which will not only support teaching, learning activities but also extend to educational planning, governance and administrative activities.
Additionally, Rs 1,500 crore earmarked for schemes to incentivise digital payments. Joining hands with a proud nation in commending the first-ever digital Budget in the history of India, Henry Harvin Education is committed to transforming India into a digitally empowered society. Offering more than 100 courses
All in all, this budget is a calibrated approach to boost inclusive growth and development, triggering employment and prosperity, leading the country one step closer towards fulfilling its aspiration of ‘Atmanirbhar Bharat’.
Kapil Bardeja, CEO & Co Founder, Vehant Technologies
Governments decision to provide Rs. 15,700 crores to support the MSME sector would not only boost the confidence of small industries but will also strengthen the Government’s Make in India, Vocal for Local and Atmanirbhar Bharat visions, besides making a remarkable contribution to employment generation and will make Indian industries more efficient and surpass the global standard.
Given the current times, the budget is focused on India’s growth and we anticipate this should act as a multiplier effect to the Indian MSME ecosystem. Overall, the budget is well designed to give a boost to local manufacturing and improve the infrastructure of the country.