Budget Reaction – Mr. Antony Jacob, CEO, Apollo Munich Health Insurance

Today’s Union Budget speech has certainly brought good news for the insurance sector by the government clearly stating its intent to raise the current FDI cap of 26% to 49% via the FIPB route. 

 

An enhanced flow of foreign capital and international expertise will result in accelerating overall development of the insurance industry through increased access to international insurance products, distribution channels and world-class business practices. It should have a positive impact in boosting the overall growth of the Indian insurance sector, and more so for the fast growing health insurance sector. 

 

Additionally, higher FDI limits will also complement the idea of creating 100 new cities as increased infrastructure funding from insurance companies can be used to develop these newer cities.

 

The Budget announced by Finance Minister Arun Jaitley is a populist one, as it has addressed all segments of the population and industries. The proposed setting up of All India Institutes of Medical Sciences (AIIMS) in all the states of the country is a step in the right direction and should complement the promise of building universal healthcare by the Government. 

 

To move towards “Health for All”, the creation of a free drug service and free diagnostic service for people who cannot afford medical aid is commendable.

 

Last but not the least, on the direct tax front the changes will surely boost the confidence of the people at large at the time when inflation is a matter of challenge and concern for all.