Budget 2026: Insurers, Lenders Demand Tax Parity, Regulatory Clarity, Financial Inclusion

• Financial services sector seeks structural reforms in Budget 2026 for improved affordability, access, and long-term financial security.
• Insurance industry demands tax parity for annuities and pension products, similar to NPS, to encourage structured retirement planning.
• Calls for government co-funding and public-private risk pools for parametric insurance to address climate risk and disaster losses.
• NBFCs and alternative lenders advocate for regulatory and tax parity with banks, and refinance support for MSMEs, especially in underserved markets.
• Industry seeks clearer regulations for digital lending, incentives for data-led underwriting, and measures to revive rural consumption and private investment.

Why It Matters: Budget 2026 is crucial for financial sector reforms, focusing on tax parity, regulatory clarity, and deeper financial inclusion.