The signals that emerged from this budget speech were more important than the proposals themselves. To begin with the talk of 9% growth sets the framework for the future. Once this is set as the agenda, all policy initiatives will align to it. Policy on FDI, attracting FII, the capital market reforms, divestment norms, governance etc will all align.

Tax rates have been largely untouched. The FM has talked of low and stable tax rates, and that are simple to administer. Personal taxes are marginally down. To leave taxes untouched, and yet provide so much for social welfare is a big achievement. NREG allocation is up 44% over last year. It Is pragmatic and reasonable.

The fiscal deficit has been recognized as an important issue, but priority has been given to address growth. Fiscal stimuli continue. This is a good thing as resources from taxes and divestments will bring down fiscal deficit over time.

This budget is of huge significance for the future because it signals growth as a priority over other conflicting priorities. The budget is kind of understated on issues like divestment and FDI, but if you read between the lines, the overall picture looks at high growth rates is a lot comforting.

The impact of Union Budget FY2010 on life insurance:
The FM has set a framework for 9% growth. This signals a big positive for the insurance industry as this allows significant opportunities for investments and protection. These are natural derivatives of growth.

The removal of surcharge on personal IT and increase of exemption leaves more money in the hands of the consumer. That is good for insurance too.

FDI in insurance:
Insurance is expected to open up. The bill is already pending. There are no political ideological issues, it would only be a matter of time, say few months, or the next session of Parliament.

V. Vaidyanathan, Managing Director & CEO, ICICI Prudential Life Insurance Company