Parliamentary Panel Pushes Major Reforms for Indian Insurance and PSUs

India's Parliamentary Committee on Public Undertakings (CoPU), led by BJP MP Baijayant Jay Panda, recently tabled six crucial reports in Parliament, pushing for significant reforms in the insurance sector and improved performance from Public Sector Undertakings (PSUs). These reports critically assess the functioning of government-owned enterprises and recommend steps to boost efficiency, governance, and accountability across vital economic sectors like power, insurance, and telecommunications. A key focus of the CoPU recommendations is to accelerate 'Insurance for All by 2047', noting that India's insurance penetration currently lags at 3.7% of GDP, roughly half the global average. This aligns with recent proactive measures from the Insurance Regulatory and Development Authority of India (IRDAI), including increasing the Foreign Direct Investment (FDI) cap in insurance companies to 100% and implementing the 'Sabka Bima Sabki Raksha (Amendment of Insurance Laws) Act, 2025', all aimed at modernising the sector and enhancing policyholder protection. The push comes as PSUs are increasingly seen as crucial growth engines for the Indian economy, especially under the 'Atmanirbhar Bharat' initiative. Looking ahead, CoPU ongoing work for the 2026-27 parliamentary year will delve into 21 more subjects, including aviation, railways, renewable energy, and the adoption of Artificial Intelligence in PSUs, signalling a continuous drive for reform. The government and regulatory bodies are expected to consider these recommendations to strengthen financial protection for citizens and improve service delivery within public sector companies, potentially reshaping India's economic landscape.