New Delhi: Economist and former President of the Institute of Chartered Accountants of India (ICAI), Ved Jain, on Tuesday said that allowing 100 per cent foreign direct investment (FDI) in the insurance sector will prove to be a positive step for India’s economy and consumers.
Speaking to IANS, Jain said that in developed countries, FDI in insurance has not created problems; instead, it has increased competition and improved services.
“With 100 per cent foreign investment, competition between local and foreign companies will naturally rise, leading to cheaper insurance and services for people,” Jain said.
“Lower insurance costs will directly benefit consumers. Additionally, when logistic costs in insurance decrease, competitiveness increases and the overall efficiency of the sector improves,” he added.
He also stressed the need to reform outdated colonial-era laws. Jain explained that many laws were created before 1947 to serve British interests, when India was under colonial rule.
Even after more than 75 years of independence, several of these laws still exist. He said there is a strong need to move away from such outdated rules, especially those related to minor offences and complex procedures.
As a democratic and welfare-oriented country, India’s laws should reflect the expectations of today’s society and support citizens rather than burden them.
“Now, over 75 years after independence, there is a need to move away from these colonial rules and reform outdated laws, especially those concerning minor offenses and procedural matters,” Jain told IANS.
“Today’s society expects this. India is a democracy, and we elect the government, which functions as a social welfare institution. Therefore, laws must be aligned with this perspective,” he added.
Commenting on recent economic measures, Jain highlighted three key steps that would support the middle class and businesses.
He said raising tax-free income to Rs 12 lakh and lowering tax rates for income between Rs 12 lakh and Rs 24 lakh will directly increase disposable income for the middle class.
“Changes in GST rates, especially reductions from 12 per cent and 18 per cent to 5 per cent on certain goods, will lower prices and improve purchasing power,” Jain mentioned.
(IANS)
