Further, to encourage foreign direct investment (FDI), the government has proposed a 100 percent FDI for insurance intermediaries in the Union Budget, from the current 49%. This move is expected to help in infusion of required capital into the intermediaries segment. Increasing FDI limits in sectors like aviation and insurance is a positive step since these sectors are highly capital-intensive. The implication of the decision is to be seen when the government announces the cap on the investment.
The new government’s first Union Budget has balanced all the essential parameters of our economic dynamics, including infrastructure enhancement, skill development, job creation, and technological advancement. The vision of decade shared by the Government that lays emphasis on building a Digital India and Healthy Nation through schemes like Ayushman Bharat, is critical to further fuel the growth of the economy.”
Ashish Mehrotra, MD & CEO, Max Bupa Health insurance