Expectations from the demonetization process were always on the higher side and every sector expected something out of it. However, Insurance sector did not receive much boost from the same. The insurance sector in 2017 seems in a state of confusion.
The Budget 2017 has its overall focus on Energise, Transform and Clean India. The Government has identified 10 sub-themes which are likely to transform distinct sectors in India. The GDP for the year 2017 has also been pegged at an encouraging 6.75 to 7.5 percent. The Budget 2017 also targets to keep the fiscal deficit to 3.2% of the GDP.
However, on the insurance front, the life insurance penetration is less than 4% and budget 2017 should have included some sops which could have led to improvement in this scenario. However, insurance sector in 2017 can receive some boost if retirement savings are encouraged and insurance and NPS are identified as core areas for future growth. The 8% rebate offered by Finance minister to senior citizens in tax is a welcome move and should be linked to the insurance sector.
It would have been better if budget 2017 would have included some set guidelines to link this saving to the insurance sector.
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