Projecting a satisfactory economic growth this year despite a difficult situation, finance minister Yashwant Sinha said Thursday that insurance reforms would be carried forward to step up savings which is an engine of growth. “Given the resilience of the Indian economy to overcome the present challenges, we will achieve a growth which is satisfactory,” he said, adding that higher savings in insurance and pension sectors were necessary for higher investments in infrastructure sector which boost the overall growth rate.
Listing out reform measures in the insurance sector, Sinha told the insurance summit New Delhi that the major objective of the government would be to launch new products and spread insurance coverage to push up savings, which will lead to growth of the ecconomy. He also said insurance regulation would have to be strengthened besides developing internationally accepted code and practices and improving the structure of insurance market.
Citing latest savings figures, Sinha voiced concern over the drop in public and private sector savings, which dropped to 3.7 and 1.2 per cent of GDP.

But household savings recorded 19.8 per cent of GDP, which was a promising sign as it was the highest ever, he said.
Chalking out six areas of insurance reforms Sinha said companies should make available timely and reliable statistical data to increase transparency and strengthen the market.

Bureau Report