‘Insurance for All’ a key priority in financial inclusion agenda: FM | Insurance News

‘Insurance for All’ will be a key priority in the government’s financial inclusion agenda, with the Centre looking to expand access to insurance and pension schemes, particularly among the poorest sections of society, Finance Minister Nirmala Sitharaman said on Monday. The government is also prioritising wider access to credit and plans to establish AI training centres in every district to bridge the gap between industry requirements and the skills of young people.

 

“Insurance for all is very clearly on the top agenda,” Sitharaman said at HSBC’s Algorithm of Inclusion event in Mumbai, adding that government-backed insurance and pension schemes would continue to play an important role in extending financial protection to vulnerable sections of society.

  

Schemes such as the Pradhan Mantri Jeevan Jyoti Bima Yojana and Pradhan Mantri Suraksha Bima Yojana provide insurance cover at minimal premiums, while government-subsidised pension programmes are aimed at those who are unable to work. The government wants to ensure that these schemes reach the last person who needs them, she said.

 

The government’s focus on expanding insurance coverage is aligned with the Insurance Regulatory and Development Authority of India’s (Irdai’s) vision of ‘Insurance for All by 2047’. The initiative aims to ensure that every citizen has access to appropriate life, health and property insurance, while businesses are also covered against relevant risks. The regulator’s approach centres on improving the availability, accessibility and affordability of insurance products, particularly in underserved and rural areas. Initiatives such as Bima Sugam, a proposed digital insurance marketplace, Bima Vistaar, a composite insurance product, and Bima Vahak, a last-mile distribution network with a focus on women, are part of this effort.

 

Access to formal credit is another priority, particularly for individuals looking to start businesses or expand existing ones, she said.

 

Alongside this, the government is looking to address the mismatch between the skills of young people entering the workforce and the requirements of employers. Sitharaman said the Centre wanted every district to have a centre capable of providing training in artificial intelligence (AI), allowing young people to acquire industry-relevant skills closer to home.

 

“There is a gap between employers’ expectations and the capabilities of young people entering the workforce. Students graduating from colleges in smaller towns and rural areas may not always meet industry requirements. We want to bridge that gap,” she said. The government would also support states in upgrading Industrial Training Institutes (ITIs), many of which have not kept pace with changing industry requirements. The Centre would provide funding, while states could identify master trainers.

 

On banking, Sitharaman said a high-level committee constituted by the government would examine the future requirements of the sector and recommend measures to strengthen India’s banking system. Indian banks had emerged from the difficulties they faced in 2014-15, but the sector needed to continue evolving to meet the requirements of a growing economy. The committee would consult industry participants and experts before submitting its recommendations.

 

The finance ministry last week said the committee would be chaired by former Central Vigilance Commissioner (CVC) Suresh N Patel, who has over three decades of experience in the banking sector. Patel was MD and CEO of Andhra Bank and an executive director at Oriental Bank of Commerce. Its members include Reserve Bank of India (RBI) Deputy Governor Shirish Chandra Murmu, former Indian Bank Managing Director and Chief Executive Officer Padmaja Chunduru, and former RBI Deputy Governor N S Vishwanathan. The Joint Secretary (Banking) in the Department of Financial Services will be the member secretary. The committee has been given six months, until April 2027, to complete its work, according to a finance ministry statement.

 

Explaining the resilience of the Indian economy amid global uncertainties, the finance minister attributed it to the strength of domestic demand, rising purchasing power and policy stability. “We have a large domestic market. Earlier, the market did not have that much purchasing power. Today, we are seeing the Indian middle class grow, along with its purchasing power. This is making a difference to domestic consumption,” she said.

 

While exports remained important, the expanding domestic market provided an additional source of strength to the economy.

 

Sitharaman also attributed the decline in poverty to a combination of welfare measures and improved access to healthcare, education, food security and financial services. Health coverage under the Ayushman Bharat scheme, which provides eligible families with up to ₹5 lakh for medical treatment, had helped protect households from high out-of-pocket healthcare expenses. Such expenses often force rural families to sell land and other assets to meet treatment costs.

 

Free foodgrain distribution, housing, sanitation and drinking water programmes had also contributed to improving living conditions, she said.

 

The finance minister also emphasised the need to maintain fiscal discipline while sustaining government spending to support economic growth. Capital expenditure had grown significantly over the past four to five years, with its multiplier effect also increasing.

 

“India’s growth momentum should not be allowed to weaken,” she said, adding that the government would continue to support growth through capital expenditure while remaining fiscally responsible.