What's Happening?
India's upcoming 2026 Union Budget, set to be presented in February, may unveil a special insurance scheme for rural women. This initiative could be linked to the Pradhan Mantri Jan Dhan Yojana (PMJDY)
accounts, which have already seen over 550 million bank accounts opened, with more than 55% held by women. The government aims to expand insurance coverage for rural women by mandating the linkage of insurance products to these accounts. Additionally, the budget may increase funding for crop and climate risk insurance to provide farmers with better financial protection against adverse weather events.
Why It's Important?
The introduction of a special insurance scheme for rural women could significantly enhance financial inclusion and security for a large segment of India's population. By leveraging the existing PMJDY framework, the government can effectively expand insurance coverage and support rural women's economic empowerment. Furthermore, strengthening the crop and climate risk insurance framework is crucial for safeguarding farmers against climate-related hazards, thereby promoting agricultural resilience and stability.
