(Please enter words below)
x
x

Please enter your details

Please enter the name
+91 Please enter the mobile number
Please select the product

Live Chat

May I help you?

Begin Chat
expert_blog
 

Our MD & CEO Mr. Bhargav Dasgupta's view on the Union Budget 2017

Posted by - ICICI Lombard, GIC Ltd.
February 06 2017

The Union Budget was a much awaited event post the demonetisation drive, a momentous step by any standard. While many were expecting the budget to provide sops to balance the short term impact of the drive, I think the Government has done well to present a prudent balance sheet that focuses on the long term growth prospects of the nation and gives a boost to those areas that form the backbone of the Indian economy. To my mind, the focus on agriculture growth, digitisation, infrastructure development and enabling cashless transactions will give the necessary fillip to India's long term growth engine.

While there are many aspects of the budget that have been dissected by several experts, I would like to focus on one area that hasn't received adequate attention. For long, we as a nation, have been pursuing only the growth agenda without adequately emphasising on the importance of risk alleviation, even though natural catastrophes and man-made disasters now occur at an alarming frequency. The government has taken cognizance of this in recent times and has taken some steps towards risk mitigation for different segments of our population. Here, I would like to point towards a specific measure announced in the budget for a very critical sector - agriculture. Even though the contribution of agriculture to India's GDP is only 16%, it provides employment to over 50% of the working population. Further, the sector is highly volatile and vulnerable to both pricing as well as production risks due to droughts, inclement weather, floods etc.

While we have had several crop insurance schemes in the past, most of them have not been too successful given the complex structures and limited cover. The Pradhan Mantri Fasal Bima Yojana (PMFBY) announced in January 2016, however seems to be turning the tide. Within a year of its launch, the coverage of crop insurance has increased to 29% from 23% earlier. Today, crop insurance already accounts for the third largest segment for the non-life insurance sector as a result of PMFBY cover. By further increasing the budgetary allocation towards this scheme by ₹13,240 crore for FY18, the Government is looking to increase the coverage from the current 30% to 40% in FY18 and 50% in FY19. This will facilitate more farmers, especially the non-loanee ones to come under the ambit of crop insurance, thereby securing their harvest against the vicissitudes of erratic monsoons.

The Government has set the target to double farmer incomes in the next 5 years. By promoting risk mitigation measures through schemes such as PMFBY, we can look forward to a robust agricultural sector and ensure an inclusively growing India in the coming years.

Leave a comment

Related articles

06

July 2014
  • How to maximise your motor insurance cover

    Motor insurance has evolved significantly over the years. Consumers today can look forward to a host of additional covers as well as assistance services thus deriving maximum value from their motor insurance policy.
    Posted By - ICICI Lombard
    Read More

18

July 2015
  • Insured Declared Value and Total Loss - An Insight

    More often than not, the insured find themselves in a fix and anxiety takes over when their insured vehicle is seriously damaged and/or destroyed. Judgements about actual losses exceeding the sum insured make them even wearier.
    Posted By - ICICI Lombard
    Read More

01

October 2013
  • Online Motor Insurance - An Industry Snapshot

    When it comes to investing in a motor insurance policy, one looks for a plan that adequately covers and offers adept financial assistance during vehicle damage, theft, and road accidents.
    Posted By - ICICI Lombard
    Read More

12

January 2015
  • Safety Above All Health Insurance

    Several years of financial planning and meticulous savings helped Rakesh Mishra to plan the purchase of his new car. However, destiny had something else in store for him.
    Posted By - ICICI Lombard
    Read More

12

April 2014
  • Significance of Motor Insurance

    It is imperative for a driver to own a motor insurance. Motor insurance is legally required in almost all the countries in the world. Owning a quality motor insurance protects the driver, the passengers and their vehicle.
    Posted By - ICICI Lombard
    Read More

03

June 2017
  • India Inc must step up on cyber insurance

    As cybercrime becomes a daily phenomenon, corporate and insurance firms should work together to fight the associated risks. Click here to know more.
    Posted By - ICICI Lombard
    Read More

30

November 2017
  • Augmenting Artificial Intelligence

    Today, it is mandatory for companies to adopt quickly to technology advancements to simply stay relevant in the market place
    Posted By - ICICI Lombard
    Read More

02

February 2018
  • ICICI Lombard’s MD & CEO Mr. Bhargav Dasgupta’s take on Union Budget 2018

    Bhargav Dasgupta – MD & CEO ICICI Lombard GIC gives his opinion on the Union Budget 2018
    Posted By - ICICI Lombard
    Read More

09

May 2018
  • Integrate New Age Tech Tools to Provide Solutions

    Know how new age tech tools will provide solutions to general insurance sector from Bhargav Dasgupta – MD & CEO ICICI Lombard GIC.
    Posted By - ICICI Lombard
    Read More

22

May 2018
  • Now I Feel a Sense of Energy and Stamina

    Get to know how running helps Mr. Bhargav Dasgupta, CEO & MD ICICI Lombard GIC on every aspect of his life.
    Posted By - ICICI Lombard
    Read More

30

July 2018
  • Entering a New Era

    The health insurance sector has the agility to keep up with the changing risk scenario.
    Posted By - ICICI Lombard
    Read More

23

November 2018
  • Trust model of Ayushman Bharat may Cost Government more in long term

    Bhargav Dasgupta, MD & CEO, ICICI Lombard GIC Ltd. talks about how the insurance landscape is changing, Ayushman Bharat scheme and digitisation in insurance.
    Posted By - ICICI Lombard
    Read More

09

July 2019
  • Government Keen to Continue its Sustainable Growth Agenda, Avoid Populism

    Click here to know Bhargava Dasgupta’s, MD & CEO, ICICI Lombard General Insurance view on Union budget 2019.
    Posted By - ICICI Lombard
    Read More