Budget 2024 Expectations Highlights: With general elections looming, how will Interim Budget shape the fiscal landscape for the year ahead?

“With less than a fortnight left for the Budget, the pharma industry is hopeful of receiving some major boost from the government. Where India ranks 3rd globally in terms of pharmaceutical production by volume, we are expecting incentives and policies that will strengthen the export prospects of the country. Therefore, in order to reinforce the pharmaceutical supremacy of the country across the globe, in the upcoming budget the government should allot over 2.5% of the pharmaceutical investment towards boosting the manufacturing capacity of the pharma products while ensuring that the products are of the highest quality. The budget should be strategically allotted to promote innovation and tailoring manufacturing practices to meet the rising demand projected in the market while being at par with international standards. On similar lines, to further accelerate the growth of the pharma industry, the upcoming budget should incessantly focus on bolstering the R&D capability to strengthen the manufacturing landscape with the integration of cutting-edge technologies and highly efficient equipment.” Said Mr. Deepak Pahwa, Director, Delair

Dr Girdhar Gyani, Founder Director, Association of Healthcare Providers (AHPI):

Healthcare & Education are two pillars on which democratic framework can flourish. Beginning with new health policy in year 2017, government is decisively pursuing mission to realize universal health coverage. It includes making healthcare accessible and affordable. We need to more than double the number of beds to reach close to WHO mark of 3.5 beds per 1000 population. More so these beds are needed in deficient states in general and tier-III cities in particular. This will need big allocation in budget by the government. Along with this, government may bring incentives in the budget to promote private investment. Without having basic health infrastructure, we will not be able to have effective universal health coverage. Rationalizing of reimbursement tariffs under PRADHAN MANTRY JAN AYOG YOJANA needs priority attention to bring tertiary care hospitals under the scheme.

Besides increasing number of beds, we need to build allied health sector like pharmaceuticals and medical equipment/ devices. Most of medical diagnostic equipment are imported. We need aggressive push through incentives to bring more technology partners to invest in this sector through joint ventures and homegrown research. New technologies like AI, 3D Printing, Digital/ Smart Hospitals, Remote sensing/ monitoring gadgets will be needed to improve accessibility. Finally we need bigger allocation for promotive and preventive health initiatives including focus on; safe drinking water, nutrition and sanitation.

“The upcoming 2024 Union Budget presents a golden opportunity to uplift the Indian real estate [RE] sector. With a growth projection from 6-8% in 2023 to a robust 13% by 2025, RE plays a dynamic role in job creation, contributing to GDP, and fostering economic development.

Simplifying the current regulatory process, which demands more than 30 approvals for each project, is essential. Introducing a single window clearance system can significantly reduce paperwork, enhance efficiency, and save time for all involved parties. To boost growth further, it’s crucial to lighten the financial load by reducing payment requirements. Additionally, expediting the inclusive processes for land acquisition and Change of Land Use (CLU) is vital. These steps not only make loans more accessible but also accelerate project timelines, minimizing uncertainties.

In essence, the 2024 budget holds the promise of transformative reforms that will drive the Indian real estate sector toward a more streamlined, inclusive, and positively impactful future,” says Rohit Gupta, CEO of Mantra

“Standing as a prominent player in the global solar revolution, Indian solar energy claims an impressive 54.76% share of the country’s total renewable installed capacity, reaching a substantial 73.31 GW (as on Dec 2023). This shift reflects a substantial move towards fostering a more sustainable and eco-friendly energy landscape in India. The upcoming Budget 2024 will serve as pivotal bridge to realize this ambitious mission.

To fuel this mission, we expect substantial investments in R&D, subsidies, and workforce development to drive down costs and boost competitiveness. Lower interest rates, dedicated green bonds, and innovative financing models ease financial burdens on manufacturers and developers. Simplified land acquisition, expedited clearances, and attractive tariffs create a thriving investor climate. Mandatory rooftop solar installations, consumer subsidies, and export incentives for domestic equipment unlock domestic demand and align with India’s Aatmanirbhar Bharat goals. Modernizing grid infrastructure and supporting DISCOMs ensure efficient solar integration to improve the distribution network and provide financial or technical assistance to the existing grid. Prioritizing these measures will unlock India’s solar potential, achieve clean energy goals, strengthen energy security, and propel India to the sunlit the stage as a global solar leader,” says Gyanesh Chaudhary – Chairman & Managing Director, Vikram Solar Limited.

“There are a number of policies that the current government has framed and is implementing that relate to sustainability in rural settings. It would be great to have enabling environment that could allow for convergence in terms of easier application as well as facilitation of these subsidies. We already see this convergence in service delivery through Direct Benefit Transfer into bank accounts. A convergence in application processes would enable easier access and wider coverage, especially in far-flung rural areas.

Separately, simplification of allocation and reporting norms for CSR budgets spent in rural areas could drive CSR funds in developing much-needed public infrastructure in these areas,” says Ankit Mathur, Co-Founder Greenway Grameen.

“There are a number of policies that the current government has framed and is implementing that relate to sustainability in rural settings. It would be great to have enabling environment that could allow for convergence in terms of easier application as well as facilitation of these subsidies. We already see this convergence in service delivery through Direct Benefit Transfer into bank accounts. A convergence in application processes would enable easier access and wider coverage, especially in far-flung rural areas.

Separately, simplification of allocation and reporting norms for CSR budgets spent in rural areas could drive CSR funds in developing much-needed public infrastructure in these areas,” says Ankit Mathur, Co-Founder Greenway Grameen.

“As an academician, I would expect the upcoming budget to have a larger focus on education and research. I hope to see more funding for academic institutions so that they can perform quality research and have a sound infrastructure in place. Overall, it would also be nice to see affordable 5G services in rural areas so that it can accelerate India‘s growth story. The budget’s impact on technology and innovation within academic spaces will rely on strategic investments. Assignment of resources towards state-of-the-art research facilities and cross-disciplinary studies will lead to a conducive environment for technological advancements. Also, any support provided towards skill building initiatives like digital literacy etc will play a key role in creating a workforce that is skilled enough to contribute to India’s growth in the tech space,” says Prof. Himanshu Joshi, Information Management, International Management Institute.

Dr. Poonam Chauhan, Program Director – Healthcare Management, K J Somaiya Institute of Management:

The healthcare in India needs to be affordable and accessible for the masses. The 30% of population approx. 40 crore individuals are devoid of any financial cover called ‘the missing middle’ in the Niti Aayog report released in 2021.There have been policy initiatives to bring structural reforms in Healthcare and foster public private partnerships. The Ayushman Bharat is the National Health Protection Scheme that aims to provide health cover to poor and vulnerable families

The multi payer healthcare system as opposed to single payer healthcare system financed by taxes increases the burden of healthcare for the large middle class citizens. It is imperative that the individuals should secure health insurance to mitigate the risk of their savings being wiped out in emergency hospitalisation and critical illness. The premium of medical insurance can be claimed as Health Insurance Tax deduction under section 80D of Income Tax Act,1961. However the new Income Tax regime introduced in 2020, allows one to opt for lower income tax slabs rates and forgo almost all tax breaks of old tax structure.

The policy initiatives and increased government budgetary spending in the healthcare sector has led to a decline in out of pocket expenditure(OOPE) , still India’s OOPE as percent of current health spending is 63%, which is highest in the world, significantly above the average for the lower-middle income countries.

Dr Joy Shah, Founder of Beagle Lasers:

Union budget 2024 is expected to allocate a much higher budget over previous years. The major focus may be to strengthen the availability of quality healthcare to even rural areas of India.

Government may allocate more funds and announce more schemes that boost manufacturing of medical equipment in India. Import may be discouraged. We are expecting some changes in the GST tariff and services covered under healthcare.There may be strengthening of import regulations to reduce the influx of imported medical equipment. This budget may create a conducive environment for local manufacturers to thrive and contribute to the “Make in India” initiative and boost employment opportunities and enhance the quality of healthcare services. Surprise packages may be announced for health tech and artificial intelligence (AI) in revolutionizing the healthcare sector. Overall it is expected that there will be some boost in past initiatives.

Tejas Jain, Founder of BimaKavach:

Experts in the insurance industry are pushing for significant adjustments in taxation, regulation, and technology in the budget. They support lowering the deductibility limits to provide tax benefits on life insurance products, especially term plans. One proposal is to lower the GST rate on insurance premiums. To improve affordability, another is to remove taxes from annuity returns to increase their appeal. A composite licence, a relaxation of the minimum capital requirements, and the promotion of microinsurance for low-income populations are among the regulatory expectations. Support for InsurTech businesses and a cybersecurity emphasis are sought in the technology sphere to encourage innovation and guard against cyber dangers, ultimately encouraging ubiquitous, inventive, and affordable insurance. The insurance industry hopes that the forthcoming budget will provide more regulatory flexibility, easing some of the strict regulations that impede market expansion and innovation. Experts highlight that to promote competition and simplify operations, minimum capital requirements for new insurers should be loosened. The need for a more efficient industry is evident in the idea for a composite licence. To ensure data security and promote technological breakthroughs, a legal framework that supports InsurTech businesses and cybersecurity measures is necessary.

Siba Panda, Founder and Managing Partner, ValuAble:

Anticipating the upcoming post-2024 election Union Budget, the interim budget stands as a pivotal bridge, laying the foundation for sustained positive financial prospects. The investment community eagerly awaits a shift in sentiment toward startup investments following an extended funding winter. The rationalization of capital gains tax is sought to bolster capital inflows into the flourishing startup landscape, which has attracted a substantial $100 billion over the last six years.

Despite apprehensions surrounding recent RBI regulations impacting Alternative Investment Funds (AIF), acknowledging the role of stringent standards in reinforcing the investment ecosystem becomes imperative. A commitment to enhanced regulatory measures, combined with aligning AIF with global standards, serves to fortify the system, a crucial element for maintaining investor enthusiasm.

Post the interim budget of 2024, expectations abound for continued further provisions in Union Budget 2024 that specifically cater to the startup ecosystem. These may include simplified regulations, heightened corporate governance, and incentives tailored for Environmental, Social, and Governance (ESG) practices, all contributing to fostering sustainable growth.

Dr. Gorav Gupta, Psychiatrist and Co- Founder of Emoneeds:

At Emoneeds, we eagerly await the upcoming budget with optimism for groundbreaking initiatives in the mental health sector. In a country where there is just one psychiatrist for every two-lakh people, the need for increased accessibility to mental health services is paramount, especially as the population continues to rise. We strongly advocate for the allocation of resources to back awareness programs reaching all communities, with the aim of destigmatizing the act of seeking help when needed. A dedicated fund to address serious mental illnesses should be an integral component of this initiative. To combat the alarming suicide rates among students and corporate employees, we propose the incorporation of emotional wellness programs in educational institutions and corporations to enhance accessibility and support. Including the reimbursement of mental health services in healthcare insurance would be a vital step in this direction. Recognizing the innovative solutions emerging from the Healthtech sector, we also urge the provision of a dedicated budget for startups leveraging deep technology.

Rajat Goel, Co Founder of Eye Q Super Speciality Hospital:

As a leading eye care hospital chain in India, Eye-Q is acutely aware of the pressing need for proactive measures in addressing the vision challenges faced by millions. With an estimated 34 million people grappling with blindness or moderate to severe visual impairment, the economic toll on our nation cannot be understated. As we await the Union Budget 2024, our expectations are centered on transformative initiatives. The government must prioritize large-scale door-to-door eye screening, testing, and awareness programs, especially in remote regions and among marginalized communities. A dedicated drive to clear the backlog of cataract surgeries, particularly in tier-II III towns is paramount. In order to realize this objective, we expect the budget to incentivize eye care hospital chains committed to ensuring accessibility, inclusivity, and maintaining high-quality eye care. Moreover, a strategic reduction in GST and import taxes is crucial for enhancing affordability of health insurance and eye-care equipment.

Rajit Mehta, MD & CEO, Antara Senior Care, Part of Max Group:

“India’s fast changing demographic coupled with a steady increase in life expectancy and evolving needs of seniors is spurring demand for senior specific care services and products. I hope the Union Budget 2024 will respond to this changing reality by announcing senior care specific initiatives and investments. The $12-15 billion senior care market in India is set to increase to $40-50 billion by the end of this decade, and would require robust policy frameworks, financing mechanisms, expanded care capacity, and an elder-care ecosystem involving both the public and private sectors. The spending on non-prescription healthcare is estimated to reach around $ 5.33 trillion by FY25 and sustained investments in geriatric healthcare infrastructure, skilled workforce development and wellness services for seniors would ensure better quality and access for Indian consumers. This budget holds the key to unlocking that potential, and at Antara Senior Care, we eagerly await the Finance Minister’s vision for a healthier, happier India, where every life, regardless of age, is celebrated and nurtured.”

Neera Nundy, Co-founder and Partner at Dasra:

India carries the largest burden of the SDGs. Moving the needle on SDGs in India impact the Global goals. Philanthropy can act as a catalyst and complement government efforts to drive inclusive development in India. Ahead of the Union Budget, the government could consider unlocking family and corporate giving with favorable policies and tax incentives. This can enhance India’s global position in scaling solutions to achieve SDGs.

With the compounding impact of commodity price shocks, climate-related disasters, and the enduring effects of the pandemic on vulnerable communities in India, there is significant untapped potential to channel more capital to scalable community-based solutions. In fact, total private philanthropy financing in India is expected to expand at 11% annually over the next five years, driven by strong development in CSR, Family Giving, and Retail Giving. We must acknowledge and support NGOs who are on the frontline of rebuilding a resilient India; the government is a critical partner in the journey.

Balachander Sekhar, Co-founder of RenewBuy:

“While urban areas show promising signs in retirement preparedness, smaller towns and cities exhibit a substantial gap in retirement savings. Annuity products stand as a critical avenue for post-retirement income. Thus, it becomes imperative for the government to consider reducing or even eliminating taxes on these products. Such a move could incentivize more individuals to actively secure their financial futures, effectively addressing the pressing challenges associated with retirement planning.

The vision of “Insurance for All by 2047” demands strategic planning, especially in the upcoming budget. The government can pave the way for a more inclusive and secure future through insurance during Budget 2024-25, where insurance is made for affordable, incentivizing, and accessible to masses.”

Gaurav VK Singhvi, Co-Founder of We Founder Circle:

According to a report by NASSCOM, startups contributed to over 4 lakh direct jobs in 2020, and have the potential to create 1.1 million direct jobs and 2.5 million indirect jobs by 2025. Therefore, supporting angel investors would also support job creation and social impact in the country.

Simplifying the regulatory and compliance framework for startups, and providing a single-window clearance mechanism for various approvals and registratons.

Increasing the supply and diversity of capital for startups, and addressing the funding gap in the early and growth stages of the startup lifecycle.

Encouraging more participation and involvement of domestic and foreign investors in the startup ecosystem, and enhancing the quality and quantity of mentorship and guidance for startups.

Stimulating more innovation and technology development in the startup sector, and fostering the creation of new products, services, and solutions that address the needs and challenges of the society and the economy. Supporting the survival and sustainability of startups, and reducing the failure and exit rates of startups in India. Creating more value and wealth for the investors, the startups, and the economy, and generating more employment and income opportunities for the people.

Dr Joy Shah, Founder of Beagle Lasers:

Union budget 2024 is expected to allocate a much higher budget over previous years. The major focus may be to strengthen the availability of quality healthcare to even rural areas of India.

Government may allocate more funds and announce more schemes that boost manufacturing of medical equipment in India. Import may be discouraged. We are expecting some changes in the GST tariff and services covered under healthcare. There may be strengthening of import regulations to reduce the influx of imported medical equipment. This budget may create a conducive environment for local manufacturers to thrive and contribute to the “Make in India” initiative and boost employment opportunities and enhance the quality of healthcare services. Surprise packages may be announced for health tech and artificial intelligence (AI) in revolutionizing the healthcare sector. Overall it is expected that there will be some boost in past initiatives.

Tejas Jain, Founder of BimaKavach:

Experts in the insurance industry are pushing for significant adjustments in taxation, regulation, and technology in the budget. They support lowering the deductibility limits to provide tax benefits on life insurance products, especially term plans. One proposal is to lower the GST rate on insurance premiums. To improve affordability, another is to remove taxes from annuity returns to increase their appeal. A composite licence, a relaxation of the minimum capital requirements, and the promotion of microinsurance for low-income populations are among the regulatory expectations. Support for InsurTech businesses and a cybersecurity emphasis are sought in the technology sphere to encourage innovation and guard against cyber dangers, ultimately encouraging ubiquitous, inventive, and affordable insurance. The insurance industry hopes that the forthcoming budget will provide more regulatory flexibility, easing some of the strict regulations that impede market expansion and innovation. Experts highlight that to promote competition and simplify operations, minimum capital requirements for new insurers should be loosened. The need for a more efficient industry is evident in the idea for a composite licence. To ensure data security and promote technological breakthroughs, a legal framework that supports InsurTech businesses and cybersecurity measures is necessary.

Neha Bagaria – Founder & CEO, HerKey (formerly JobsForHer):

“As India gears up for the annual budget, I advocate for a targeted strategy to upskill women returnees in future-ready skills. A joint effort by the government and corporate India can pave the way for incentives and tax breaks for companies investing in the training of these women. Aligning with the evolving landscape of future skills is essential for fostering a resilient and diverse workforce. Let this budget signify a strategic commitment to inclusive growth, where the development of these skills becomes a cornerstone for a dynamic job market, creating opportunities for women on a career break.”

Deepak Gagrani, Founder of MADHUBAN FINVEST:

“1. Interim Budget Caution: Given that it is an interim budget, we anticipate a tempered approach with fewer large-scale announcements. Major policy shifts may be reserved for the full-fledged budget.

2. Tax Regime Emphasis: We foresee the government’s persistence in steering taxpayers towards the new tax regime, possibly through the introduction of additional slabs and incentives. We don’t hold high hopes for substantial improvements in personal taxation under the old regime.

3. Sectoral Focus on Tourism and Renewable Energy: We expect a sustained emphasis on domestic tourism and renewable energy. Both sectors are likely to feature prominently, showcasing the government’s commitment to sustainable practices and boosting the domestic economy.

4. Infrastructure Development: We expect continued attention on infrastructure development, with potential allocations for projects aimed at enhancing connectivity, transportation, and overall economic growth.”

Satish Ramanathan, CIO – Equity, JM Financial Asset Management Ltd:

“Given the current mood, we do not anticipate any populism in the budget. We do not expect that the Government will go for major announcements in an “interim budget”, before the elections. They may signal their intent on continuing on the path of pragmatic fiscal management with a continued focus on infra spending and spending on social infrastructure. One area where we may expect some positive relief is on personal income tax. There may be some rationalisation of tax slabs and rates. A budget which broadly reflects the past trends while laying down the big picture for the way ahead, may be welcomed by the market and be supportive of the economy.”

Mihir Vora, CIO, TRUST Mutual Fund:

“Continue fiscal consolidation, Deficit target of 5.3-5.5% against FY24 at 5.9%

FY24 saw muted revenue expenditure growth of about 3% while capital expenditure remained the focus, with 30% growth so far. Revenue expenditure growth for FY25 may continue to remain low.

FY25 may focus on support to rural consumption as it has been a weak spot, Focus on rural may be at some cost to capital expenditure.

Direct tax collection growth may be lower compared to FY 24 which will see over 20% growth.

Indirect tax collections to remain healthy

FY 24 will see Tax/ GDP at the highest levels since 2008. This will continue to improve with increasing compliance

PLI schemes to continue and more sectors are likely to be covered under the scheme.

Defense spending growth may be single-digit, but focus on private sector manufacturing and local manufacturing to continue

Railways capex growth to continue

Divestment targets may be higher for FY25 as stockmarkets are near all-time high, and there is appetite for public stocks.

for the first time, personal income tax collections are higher than corporate tax collections. We may see some lowering in personal income tax rates and slabs under the new regime”

Ajath Anjanappa, CEO & Co-founder, Fabits:

“As the buzz around the Interim Union Budget 2024 heightens, the fintech space is brimming in anticipation of measures like ease of business, tax incentives, continued government support for technological advancements, and compliance simplification. In the quest for making financial planning and wealth management simple and accessible for the users, we at Fabits think the government’s stance on digitisation and compliance relaxations could be of utmost significance.

This interim budget could be a crucial insight into the upcoming government’s economic policies. Besides the key themes being discussed by experts, here’s how I think fintech, and personal finance and investments in general, may be shaped by this interim budget –

Democratisation of taxes: The introduction of new slabs and wealth taxes will ensure a more progressive and inclusive tax structure. A revision in the income tax slabs can simplify the taxation structure for individuals and an increase in the basic exemption limit will reduce overall tax burden on lower-income individuals, making more room for investments.

Incentives for Clean Energy Investors: Investors can expect to be rewarded through tax exemptions for investments in renewable energy and sustainable practices.

Increased government spends on Defence budget: Due to rise of geopolitical tensions around the globe, the focus will strongly remain on defence with possible increased spends – the total allocation is expected to reach ₹6,35,085 crore (7% increase). Government initiatives are already bringing in these spends back into the economy through strategic partnerships (ex – HAL & GE partnership for knowledge sharing and defence manufacturing). The Nifty India Defence Index gave 91% returns in 2023, making this sector a hot property for investors

Increased government investments in Infrastructure: Government is also expected to prioritise rural and urban connectivity, railways, ports, aviation, and highways to make the bulk of population also contribute to the economy significantly with ease. Infrastructure-linked funds offered an average return of around 33.23% in the last three years. The Ministry of Road Transport and Highways has requested a budgetary allocation of Rs 3.25 lakh crore for FY 2024-25, marking a 25% YoY increase. Predict a 7% increase in CAGR between 2024-26.”

Harshit Jain, Co-Founder and CEO, OnePlay:

“India‘s startup industry isn’t just growing, it’s putting the entrepreneurs into a promising space to create something big. Ahead of the interim budget 2024, we are eagerly expecting some major announcements, and government support remains the top expectation. The industry expects incentives for R&D initiatives, tech-driven solutions, cybersecurity support, and measures to fuel startups navigating the evolving business landscape. We also hope the budget shines a spotlight on enhancing and simplifying funding opportunities. In addition to this, the integration of digital and tech infrastructure will stimulate innovation, empowering the entrepreneurs to transform the way existing business is done.”

Himanshu Arya, Co-Founder & CEO of Luxury Ride:

“Currently Pre-owned luxury cars attract a staggering 110% GST & 100% excise duty on imported CBU units, which is a major deterrent to imports. Reducing these taxes would make imported cars more affordable and accessible to consumers and help boost domestic market competition.

The Ministry of Road Transport and Highways (MORTH) has initiated an initiative to facilitate the online transfer of ownership for pre-owned vehicles. However, the period required to transfer the ownership is very tedious. We request the government to expedite the implementation of this portal to improve transparency and confidence in the pre-owned vehicle market.”

“In the upcoming budget, we anticipate that the finance minister will exempt insurance policies from GST, which will bring down insurance premiums. This step will increase insurance affordability and help fulfil Prime Minister Modi’s dream of insurance for all Indians by 2047. Additionally, we expect the government to increase the tax exemption limit under 80C, which will encourage savings, promote insurance coverage, and stimulate economic growth. Various studies have shown that increased insurance penetration has a multiplier effect on the economy by reducing overall financial distress and making long-term growth capital available to important nation-building industries” said Mr. Ankit Agrawal, Founder & CEO, InsuranceDekho.

Rakesh Goyal, Managing Director, Probus Insurance broker:

“The insurance industry advocates for a reduction in the Goods and Services Tax (GST) on insurance products, a move that would significantly benefit consumers across the nation. The current 18 per cent GST rate is deemed excessively high, and anticipation exists for a revision. Moreover, there’s a call for greater flexibility for deductions from health insurance for personal use, family needs, and senior care. Additionally, there is a business plea for distinct deductions within Section 80C of the Income Tax Act, particularly for insurance, a measure that holds promising potential for long-term business growth. These proposed adjustments collectively aim to create a more favourable environment for both insurers and policyholders.”

“Elevating the Real Estate sector to industry status is key. We anticipate impactful policies, fostering industry growth with tax incentives measures making it more lucrative for homebuyers. The holding period for residential properties as a long-term capital asset should be shortened to 12 months, aligning with market dynamics.

In line with the government’s ‘housing for all’ focus, boosting home purchases through elevated tax deductions both for developers and buyers is crucial, making home ownership more affordable and enticing,” says Ramesh Ranganathan, CEO, K Raheja Corp Homes.

Aftab Chaz, Associate Director and Business Head at Elephant.in :

For budget 2024, reducing GST to tax reductions in health and life insurance are important to increase the insurance penetration into the country. There is also a need to push digital more into the smaller markets, to increase outreach of health, life and motor insurance into the country. There should be some incentive for insurance products like travel insurance, crop insurance, home insurance, insurance for natural disasters as these segments are cropping up as significant insurance categories.

There is a need to lower the GST on insurance products. Currently, life insurance attracts a 18% GST, while health insurance falls under a 5% slab. This disparity creates confusion and discourages affordability, particularly for low-income segments. A unified, lower GST rate would make insurance more accessible and attractive, driving deeper penetration. Lowering Goods and Services Tax (GST) on term life insurance and implementing ‘Zero rating’ for certain type of essential insurance policies like Pradhanmantri Jeevan Jyoti Bima Yojana, especially those that cover smaller amounts (covering up to ₹2 lakh) will definitely help more people and make insurance more affordable for everyone.

The government should also consider the introduction of personal accident policy under 80D or introduction of new deduction, wherein penetration of accident insurance will go up. This will help in 360 degree insurance for Individuals, by having their health, life, and personal accident insurance as well.