Reaction quote on Interim Budget 2024 Mr. Amit Agarwal, CEO, Howden Insurance Brokers
Below the reaction quote on Interim Budget 2024 from Mr. Amit Agarwal, CEO, Howden Insurance Brokers (India).
“We commend the massive tripling of capital expenditure on infrastructure development in the past 4 years, resulting in a huge multiplier impact on economic growth and employment creation. The outlay for the next year is being increased by 11.1 percent, which amounts to INR 11.11 lakh crore, announced the FM. This is 3.4 percent of the GDP. It is noteworthy that the International Monetary Fund (IMF) raised India's FY25 GDP growth forecast to 6.5%. Substantial investment in infrastructure presents a significant opportunity for the insurance market to expand, as it plays a crucial role in mitigating the risks associated with large-scale projects. The IMF's revised growth forecast for India and its projected economic trajectory underscore the importance of robust risk management strategies, which the insurance sector is well-equipped to provide.
Furthermore, Ayushman Bharat and Government's mission of 'Insurance for All by 2047' are pivotal in driving insurance penetration across the nation. Ayushman Bharat not only enhances insurance penetration at the grassroots level but also fosters greater awareness about the importance of insurance. Health insurance, with its diverse range of coverage options, is instrumental in ensuring comprehensive protection for all segments of society.
The synergies between infrastructure development and insurance penetration highlighted in the budget are indicative of a conducive environment for the insurance industry to thrive. This presents an opportunity for insurers to innovate and tailor solutions to address emerging risks effectively. By leveraging this momentum, the insurance sector can contribute significantly to India's resilience against future uncertainties. Extending Ayushman Bharat cover to all Anganwadi and Asha workers, along with consolidating healthcare schemes, enhances accessibility and affordability. These initiatives bolster the insurance sector's role in advancing societal welfare and economic development.
In conclusion, the IMF projects that the Indian GDP will experience a growth of 6.3% in both FY2023/24 and FY2024/25, making a significant 16% contribution to global economic growth. As India progresses towards becoming a USD 4.5 trillion economy, the per capita GDP is expected to rise fostering an increase in discretionary spending. This optimistic economic outlook leads us to believe that the insurance industry will witness a positive upswing, driven by the growing discretionary spending trends in India.”
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