The Union Budget 2025 has introduced significant reforms for the insurance sector, with 100% FDI being a key highlight. Naveen Chandra Jha, MD & CEO of SBI General Insurance, praised the government’s move, emphasizing its potential to deepen market penetration, attract capital inflows, and integrate global best practices.
“Budget 2025 marks a transformative step for the insurance sector in India, particularly with the introduction of 100% FDI,” Jha stated. He highlighted that this reform will foster competition and help the sector expand its reach, bringing more people under insurance coverage. “This reform is set to drive deeper market penetration by attracting greater capital inflows, fostering competition, and integrating global best practices,” he added.
Jha also welcomed the government’s focus on healthcare infrastructure, particularly the establishment of Day Care Cancer Centres in district hospitals, which aims to improve critical care access. “The government’s commitment to strengthening healthcare infrastructure, including the establishment of Day Care Cancer Centres in district hospitals, is a significant step toward improving critical care access,” he noted. He reaffirmed SBI General’s commitment to bridging the protection gap through broader health insurance penetration in both urban and rural India.
The proposed tax reforms in the budget, including TDS rationalization and increased thresholds for senior citizens, are expected to promote financial inclusion and empower taxpayers. “The proposed tax reforms, including TDS rationalization and increased thresholds for senior citizens, will empower taxpayers and promote greater financial inclusion,” Jha explained.
Jha concluded by emphasizing the budget’s role in creating a robust insurance ecosystem. “Collectively, these initiatives lay the foundation for a robust insurance ecosystem, supporting the government’s vision of ‘Insurance for All’ by 2047,” he said.
With reforms focused on foreign investment, healthcare, and taxation, the Union Budget 2025 sets the stage for significant growth and innovation in India’s insurance sector.
