INSURANCE PENETRATION INDIA
GST Council slashes tax slabs to two to spur consumption; announces key measures for middle class
GST Meeting News: The Goods and Services Tax (GST) Council has streamlined India's indirect tax system. It reduced the existing four tax slabs to two. Many items will become cheaper as they move to lower tax brackets. This aims to boost consumer spending. The change follows Prime Minister Narendra Modi's promise of a GST overhaul.
GST reforms to set stage for next investment cycle, provide tailwind for growth in coming quarters and years: Sanjiv Bajaj
Sanjiv Bajaj hailed the government’s GST rate cuts as the biggest reform since 2017, calling it a major driver for demand, lending, and financial services. He expects festive spending, MSME growth, and housing finance to benefit, alongside expanded insurance coverage due to exemptions.
GST exemption on insurance a game changer, says PB Fintech’s Yashish Dahiya
PB Fintech's CEO, Yashish Dahiya, hails the GST exemption on individual life and health insurance as a landmark reform, emphasizing its potential to boost awareness and adoption. He believes the government's move sends a strong signal about the importance of these essential products for families.
GST 2.0 is here. How should you tweak your mutual fund portfolio
GST 2.0 is set to revamp India's indirect tax system. Experts suggest domestic-facing sectors will benefit. Sectors like autos, staples, and retail may see better demand. Premium apparel and luxury cars could face pressure. The revised rates will be effective from September 22, 2025. Investors should consider their risk appetite before tweaking their mutual fund portfolio.
HDFC Life shares in focus as revised GST structure to kick in from September 22
HDFC Life shares: The insurer announced adoption of the revised GST structure on all insurance products from September 22, 2025. The company said the GST cut will make policies more affordable, boost demand, and aid long-term growth
Spreading the safety net farther and wider
Waiving GST on health and life insurance premiums, though potentially regressive, could boost insurance penetration and reduce the state's social security burden. This move aims to address affordability issues, attract foreign investment, and stimulate domestic consumption amidst slowing growth. Ultimately, it seeks to improve insurance sector reforms and mitigate external volatility.
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Bankers say GST Council decision to boost consumption, credit growth
Bankers anticipate that the GST Council's recent decisions, including reduced tax rates on various goods, will significantly boost consumption and credit expansion. This reform, effective September 22, 2025, is expected to increase disposable incomes, stimulate demand across sectors like retail and agriculture, and ultimately drive substantial economic growth. Businesses will also benefit from simplified compliance and improved competitiveness.
GST reforms: Life & health insurance to see 0% GST
The GST Council has eliminated the 18% tax on individual life and health insurance policies, aiming to boost affordability and coverage. Finance Minister Nirmala Sitharaman expects companies to pass on the benefits to consumers. This move, effective for all individual policies and reinsurance, seeks to reverse the recent decline in insurance penetration across India.
Insurance law changes set to benefit global parents of JVs
Draft amendments to Indian insurance laws propose easing restrictions imposed in 2021, potentially benefiting global insurers like Generali and Ageas. The changes remove requirements for retaining profits and board composition, freeing up capital and reducing governance pressures. These reforms aim to attract foreign investment, simplify regulations, and deepen insurance penetration in India.
Exemption of GST from life and health insurance premium to make products affordable: Insurers
The GST Council's landmark decision to exempt insurance premiums from GST is poised to revolutionize the insurance sector. Insurers hail this move as a game-changer, anticipating increased affordability and wider insurance penetration. This exemption, covering life and health insurance, aims to ease financial burdens and promote health security for citizens, potentially driving a shift towards accessible digital solutions.
Consumption boost and GST reforms set to drive economic growth and sectoral gains: Sunil Subramaniam
India’s economic landscape is poised for a significant uplift following the government’s recent policy announcements aimed at boosting consumption and reducing GST burdens.
GST relief to boost insurance penetration, ease burden on policyholders: Nilesh Sathe
The government's GST reform has eliminated the 18% tax on insurance premiums, a move expected to boost insurance penetration in India. While policyholders will benefit from lower costs, insurers may face challenges in adjusting premium structures due to the loss of input tax credit, potentially squeezing profit margins, especially on renewal policies.
Diwali bonanza from GST panel! Market may rally further on resolution on tariff front, says Julius Baer’s Rupen Rajguru
Following the GST Council meeting, Julius Baer's Rupen Rajguru anticipates a potential market rally driven by tax cuts and tariff resolutions. He suggests that Indian equities, currently underperforming, could see a turnaround. Rajguru favors consumption-related sectors like autos and low-ticket discretionary items, while remaining neutral on IT and optimistic about pharma, particularly hospitals and CDMOs.
ITC, HUL, other FMCG stocks surge up to 7% as GST on daily essentials slashed to 5%
Fast-moving consumer goods companies saw a surge after the GST Council reduced tax rates on essential items. Stocks of Britannia Industries, Dabur, and Colgate-Palmolive rose sharply. Hindustan Unilever and ITC also experienced gains. The new rates will be effective from September 22, 2025.
Will insurance premiums become cheaper in GST 2.0?
The GST Council has eliminated the 18% tax on health and life insurance premiums, a move under PM Modi's GST 2.0 reforms aimed at simplifying the tax structure. This exemption is expected to lower premiums, potentially boosting demand and increasing insurance accessibility for a wider population, though insurers may face short-term margin pressures.
Diwali cheer comes early for Indian middle class as Sitharaman announces GST 2.0
Diwali arrives early for the Indian middle class. The GST Council reduces tax slabs to 5% and 18%. Food, essentials, and durables become cheaper. Families save money on various products. Personal care items and smaller cars also see tax cuts. Health insurance becomes exempt from GST. The new rates are effective from September 22, 2025.
NPCI raises UPI transaction limit to Rs 5 lakh for high-value payments
The relaxed transaction limit will apply to categories, including insurance, travel, jewellery, and credit card bill payments, among others.
Bima Vistaar: New insurance product set to launch in rural India by December 2025
Bima Vistaar, a comprehensive insurance product covering life, health, and property for rural populations, is expected to launch by December 2025. All insurance companies will offer the product at a uniform price, providing a Rs 5 lakh cover per individual, aiming to increase insurance penetration in rural India.
Legal and regulatory landscapes set to transform with InsurTech and AI in insurance: Lokanath Prasad Kar, ElpeeCo
India's insurance sector is rapidly evolving, driven by new risks and technological advancements. While IRDAI's "Use & File" approach fosters product innovation, pricing remains a challenge due to limited claims data. Focus should shift towards popularizing insurance as a risk management tool, with InsurTech playing a crucial role in accessibility.
Radhakishan Damani, Ramesh Damani, Madhu Kela, Zerodha, Groww line up to invest crores in NCDEX
NCDEX raised Rs 770 crore from star investors like Radhakishan Damani, Madhusudhan Kela, Sunil Singhania, Groww, and Zerodha after Sebi’s nod for equities. It plans to launch equity trading in 2026, competing with NSE and BSE.
Riding the growth wave: Top 4 affordable housing finance companies to watch in 2025
Affordable housing finance companies (AHFCs) are outperforming other non-banking financial companies, driven by lower borrowing costs and rising demand. Policy support and low mortgage penetration in mid- and low-income segments are expected to fuel further growth. While competition and rising costs pose challenges, AHFCs are poised to capture a significant share of the affordable housing finance market.
Chasing 10% rental yields, not homes - Why Indian HNIs are shifting from debt products to commercial property
India's wealthy are increasingly favoring commercial real estate for its higher yields and stability compared to residential properties and debt instruments. Fueled by a growing HNI population, their investments in commercial properties are also diversifying into warehousing, hospitality, and data centers. Alternative Investment Funds (AIFs) offer a streamlined entry, but due diligence remains crucial to navigate risks and ensure sustained returns in this evolving landscape.
India’s financial sector profits set to double by 2030; UBS sees NBFCs outpacing banks
India’s financial-services sector is set for robust expansion, with profits projected to nearly double by FY30. UBS sees NBFCs leading growth, driven by retail credit, wealth management, payments, and insurance, while banks lag amid margin pressures and weak corporate lending.
Policy push, investor rush put senior care on fast track
The senior care sector in India is poised for substantial expansion. It is projected to hit 50 billion USD by 2030. The Association of Senior Living India urges states to adopt supportive policies. These policies include stamp duty and GST benefits for developers. The industry anticipates significant growth and investment.
Trump tariff impact on India ‘overhyped’; premium consumption, NBFCs to lead growth: Marcellus' Krishnan VR
Trump tariff impact on India: New US tariffs are expected to have a limited impact on India's economy. Krishnan VR of Marcellus believes domestic consumption will drive growth. Sectors like textiles may face pressure. Premium consumption, financial services, and IT stocks are potential investment themes. NBFCs and insurance companies are also expected to benefit. Government measures may cushion the tariff impact.
GST cut: Major plan on agenda for all food, textile items
The GST Council is scheduled to meet on September 3 and 4 to discuss reducing tax rates on various goods and services. Key proposals include lowering GST on cement to 18% and potentially eliminating GST on individual life and health insurance.
ET World Leaders Forum: Tariffs trigger economic uncertainty, will weigh on global growth, markets
Global investment experts caution that trade tariffs will negatively impact global growth and equity markets, forcing businesses to restructure supply chains. They suggest investors diversify portfolios with commodities and safe-haven assets. While India possesses manufacturing advantages and policy liberalization, urgent reforms are needed to compete with other nations and attract foreign investment, particularly in insurance and debt markets.
Tanvir Singh launches TrusTerra, an AI-backed deeptech platform for used EVs; targets Rs 500 cr market cap
The platform introduces TruEV Score to bring trust, transparency, and liquidity to India’s pre-owned EV market.
Hospital sector positioned for double-digit growth; Apollo Hospitals, Max Healthcare top picks
India’s hospital sector shows strong momentum, with double-digit revenue and EBITDA growth supported by demand, bed expansions, and operational efficiencies. Despite margin pressures from new hospitals and slightly lower occupancy, capacity additions and rising healthcare demand position Apollo Hospitals and Max Healthcare for sustained profitability and attractive medium-term growth.
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