“The budget announcement on increasing FDI cap in insurance to 49% is a positive step forward. We are pleased to see a decisive direction towards long pending reforms.
Insurance is a capital intensive industry and increasing the cap will enable further product innovation, enhanced customer engagement and service delivery, and highest standards of corporate governance norms.
This law will further promote inclusive economic growth targeting a larger population and enabling deeper insurance penetration.”
“In a challenging macro environment marked by decade low growth and high inflation, the new Finance Minister has presented a well balanced growth oriented budget.
The noteworthy positives include sticking to the challenging fiscal deficit target of 3% by FY2017, hiking FDI limit in Insurance and Defense sectors, providing incentives to REIT and long term infrastructure loans.
Increase in long term personal investment limit from Rs. 1 lac to Rs. 1.5 lac and hike in exemption limit for interest on housing loan from Rs. 1.5 lac to Rs. 2 lac will channelize household savings to productive sectors of the economy.
Finally, keeping the Govt. borrowing figures similar as interim budget and trying to address issues related to FII investments augur well for both debt and equity markets.”
