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By Mr. Vikash Khandelwal, CEO, Eqaro Guarantees, A Surety Solutions provider.

“The Surety Insurance sector could not have asked for a better start to the year. The IRDA released the final guidelines in January. The FM today announced in the budget that the Surety bonds will replace the traditional bank guarantees applicable for government projects. This addresses the issue of acceptance of surety bonds. Reforms in public procurement & timely payments are other big positives. All these steps will help improve the health of the infra sector.

The emergency Credit Line Guarantee, for additional credit to MSME, extended till March 2023 with a guarantee cover of Rs 5 lakh cr will help revive MSMEs. The major thrust of the budget being infra and extra spending announced will help the broader economy. The Indian economy cannot bounce back to double-digit growth without the infra sector doing well. The surety insurance sector will play an active and key role in providing a boost to the infra sector.”