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India one of the fastest-growing insurance markets in the world: Eco Survey
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IANS | 31 Jan, 2023
India is one of the fastest-growing insurance markets in the world and
is expected to emerge as one of the top six insurance markets by 2032,
according to the Economic Survey 2022-23 that was presented in the
Parliament on Tuesday.
Digitisation of India's insurance
market, accompanied by an increase in FDI limit for insurance
companies, is likely to facilitate an increased flow of long-term
capital, a global technology, processes, and international best
practices, which will support the growth of India's insurance sector.
Also,
as we move to a high middle-income economy, India's pension sector has
tremendous scope for growth. Government initiatives towards enhancing
pension literacy of subscribers and intermediaries, and a nudge from the
regulator and the government to encourage young adults to join the
pension scheme would play a significant role in enhancing pension
availability to a more extensive section of the society, the Economic
Survey said.
The increasing outreach of the banking sector and
capital markets is reflected in the insurance and pension sectors.
Insurance penetration in India has been steadily increasing, with life
insurance penetration being above the emerging markets and global
averages.
Important government interventions and a conducive
regulatory environment have supported the growth of the insurance
market, which has seen increasing partnerships, product innovations, and
vibrant distribution channels.
The pension sector too has been
taking rapid strides since the introduction of the National Pension
Scheme (NPS), more recently, the Atal Pension Yojana (APY). The sector
has witnessed a robust increase in the number of subscribers and assets
under management (AuM), the Survey said.
The expansion of the
sector has been aided by government measures such as relaxation in CCS
(Pension) Rules, integration of electronic Pension Payment Order (e-PPO)
with DigiLocker, and relaxation in the timeline for submitting Digital
Life Certificate.
As global central banks reaffirm their hawkish
stances and telegraph �higher-for-longer' policy rates in their battle
against inflation, monetary conditions are expected to remain tight
worldwide.
Domestically, however, RBI's support to growth will
ensure adequate liquidity in the financial markets. The growth in credit
offtake is expected to sustain, and combined with a pick-up in private
Capex, will usher in a virtuous investment cycle.
The credit
upcycle will also be aided by constant monitoring of the risks in the
financial system by the regulators and their efforts to contain them.
Strong macroeconomic fundamentals will underpin the return of global
capital flows to India once the fog of uncertainty lifts, the Survey
said.
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Customs Exchange Rates |
Currency |
Import |
Export |
US Dollar
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66.20
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64.50 |
UK Pound
|
87.50
|
84.65 |
Euro
|
78.25
|
75.65 |
Japanese
Yen |
58.85 |
56.85 |
As on 13 Aug, 2022 |
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