M Ravichandran, President – Insurance, Tata AIG General Insurance says, “ The Union Budget 2017 announced earlier today focussed largely on three themes – agriculture, digital revolution and emphasis on eliminating corruption and black money, while also giving a huge impetus to small and medium businesses. With a view to boost the agricultural sector, the government has increased the coverage under the Pradhan Mantri Fasal Bima Yojana from 30% to 40% in 2017-18 and 50% in 2018-19 which will help farmers get insured. Farmers will also benefit further with the government spending Rs 13,240 Cr in FY 18 on crop insurance.”
“Also, with the government emphasising further on digital India and cyber security, this will help strengthen a transparent financial ecosystem. The disposable income for individuals earning between Rs. 2.5 – 5 lakh will increase due to the reduction in tax to 5% from the current 10%. This will in turn encourage the lower and middle income strata of people to invest in instruments such as insurance, mutual funds, fixed deposits etc,” he says.