Mr. Rajesh Relan
Managing Director, MetLife India Insurance Company Limited
Budget Reaction
From the Life Insurance Industry perspective, we were expecting the FM to give a road map for the insurance Bill. In that regard the budget was a disappointment. Further, no investment incentives were extended to Life Insurance. The life insurance industry will continue to grapple with the other asset classes under the current exemption limit of 1 lakh for savings products.
The budget also did not provide any clarity on the Service Tax levied on insurance products. This will continue to impact the policy holder premium.
While the FM is targeting a growth rate of 9% in FY 10, there are no structural benefits provided to boosts the economy to reach that level. Given the confidence from the FM of achieving the target, it may only help augment the current positive sentiment about India in the short term.
The focus on infrastructure is welcome. The key to success would now be the timely implementation of all the measures announced.
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