Outlook Money
This budget offered various opportunities to the insurance sector to expand to new markets on the back of the expansion of the digital infrastructure, financial inclusion, and overall economic development through outlay to the agricultural sector and healthcare, etc.
For empowering the youth, an allocation of Rs 1.48 lakh crore for education, employment, and skilling initiatives has been made in the budget. This emphasizes employment creation.
The agricultural sector also received a significant boost with provisions for releasing new high-yielding and climate-resilient crop varieties, thereby promoting natural farming, and enhancing support for shrimp production and export.
For life insurance companies, the budget provisions include the inadmissibility of non-business expenditure in computing profits and gains, amendments to the CGST Act, and the inclusion of taxes withheld outside India as deemed income for better tax management.
In the budget, there has been a reduction in TDS rates from 5 per cent to 2 per cent for life insurance policy payments. This will benefit policyholders by reducing the tax burden on payouts.
The development of DPI applications in areas, such as credit and insurance will enhance productivity, create business opportunities, and drive innovation within the insurance sector.
The allocation to other sectors can help the insurance sector grow by stimulating overall economic growth and stability. For example, the allocation of Rs 89,287 crore towards the health sector can boost health insurance demand.
The insurance industry will play a crucial role in Budget 24, partnering with the government and other sectors to safeguard the economic well-being of our citizens.
Compiled by Syed Muskan