By:- Gautam Boda, Vice Chairman of the J.B. Boda Group
Budget 2026 has finally brought the bigger picture into focus. With one of the highlights being the record ₹12.2 lakh crore capex outlay, it offers a constructive and forward-looking outlook for both the insurance and reinsurance sectors.
Growth is most meaningful when it reaches the underserved. The Budget focuses on City Economic Regions with an allocation of ₹5,000 crore per region, alongside the new ₹25,000 crore Infrastructure Risk Guarantee Fund. This sustained emphasis on infrastructure development, economic expansion, and financial inclusion strengthens the foundation for long-term risk protection and capital support, creating a massive opportunity for our industry.
To move closer to “Insurance for All by 2047,” India is strengthening its capital framework. Today’s push towards Risk-Based Capital norms and the operationalising of 100% FDI are critical steps to encourage domestic risk capital and solvency strength. As India’s risk profile grows in scale and complexity, a robust insurance framework backed by strong reinsurance capacity will be critical to ensuring stability, resilience, and confidence across industries.
All in all, this Budget creates the right environment for deeper market penetration, innovative risk solutions, and greater global participation, positioning insurance and reinsurance as key enablers of India’s growth and resilience agenda.
