Highlights of the Indian insurance market's 2024–2025 performance

The insurance market in India grew significantly in FY2024–2025, issuing 41.84 crore policies, collecting ₹11.93 lakh crore in total premiums, and managing ₹74.44 lakh crore in assets. By focusing on "Insurance for All" by 2047, the industry increased insurance penetration to 3.7%, expanded its reach into rural areas, and digitized procedures.

Key Performance Highlights (FY 2024-25)

Market Growth and Size: The insurance market in India is the tenth largest in the world. With 41.84 crore policies issued, the total premium volume was ₹11.93 lakh crore (about USD 140+ billion).

Assets Under Management (AUM): Strong financial buildup is indicated by the total AUM of ₹74.44 lakh crore.

Claims Paid: A total of ₹8.36 lakh crore in claims were paid, demonstrating the high level of customer confidence and payouts.

Density and Penetration: The total insurance penetration is 3.7% (2.7% Life, 1% Non-Life). The insurance density rose slightly to USD 97.0.

Key Growth Drivers:

• Reinsurance: The market for reinsurance was worth ₹1.12 lakh crore.
• Health Insurance: The industry grew quickly, with premiums totaling more over ₹1.2 lakh crore.
• Distribution Network: From about 48 lakh in FY21, intermediary expansion reached over 83 lakh network partners.
• Regulatory and Technological Focus: IRDAI gave priority to the "Use and File" process for quicker product introductions and "Bima Sugam" (a digital marketplace) for insurance. To improve transparency, mandatory Customer Information Sheets (CIS) were implemented.

• Social Security Initiatives: Excellent results in government programs such as the Pradhan Mantri Jeevan Jyoti Bima Yojana.

Sector Trends

• 100% FDI: Under the revised insurance laws, the industry has made progress toward permitting 100% FDI.
• Digital Transformation: AI and robotic process automation (RPA) are now widely used in customer support and claims processing.
• Grievances: The general and health insurance industry had a nearly 45% increase in customer complaints, which prompted more regulatory attention.

India's exports rose 4.22% to $860.09 billion in FY26; imports grow faster, worsening the trade deficit.

India's exports reached by 4.22 percent to USD 860.09 billion in the fiscal year 2025–2026, while imports increased at a faster rate of 6.47 percent to over USD 970 billion, exacerbating the country's total trade deficit, according to data given by Commerce Secretary Rajesh Agrawal.

From USD 825.26 billion in 2024–2025 to USD 860.09 billion in 2025–2026, the data indicates that overall exports rose. In the meantime, imports increased to over USD 970 billion from USD 919.92 billion in the preceding fiscal year.

As a result, compared to USD 94.66 billion in 2024–25, the total trade imbalance (merchandise and services combined) increased to USD 119.30 billion in 2025–26.

From USD 437.70 billion to USD 441.78 billion, merchandise exports showed a slight increase. However, due to increased inbound shipments, merchandise imports increased more dramatically to USD 774.98 billion from USD 721.20 billion.

Services exports, which increased to USD 418.31 billion in 2025–2026 from USD 387.55 billion in 2024–2025, continued to be a significant component of India's foreign trade. Additionally, imports of services rose marginally from USD 198.72 billion to USD 204.42 billion.

Excluding for petroleum, jewelry, and jewels, trade remained largely balanced. In this area, imports increased to USD 702.98 billion from USD 653.31 billion, while exports jumped to USD 777.98 billion from USD 732.05 billion. The trade surplus, however, decreased somewhat from USD 78.74 billion to USD 75.00 billion, a decrease of USD 3.74 billion.

Imported gold witnessed a decrease in quantity but an increase in value among important commodities. While the amount decreased from 757.09 tonnes to 721.03 tonnes, the value of gold imports rose from USD 58.01 billion in 2024–2025 to USD 71.98 billion in 2025–2026. The unit value increased from USD 76,617.48 per kg to USD 99,825.38 per kg, indicating that the increase was primarily caused by higher pricing.

On the other hand, imports of silver saw a significant rise in both volume and value. The quantity increased from 5,164.37 tonnes to 7,334.96 tonnes, while the value increased from USD 4.83 billion to USD 12.05 billion. Additionally, the unit value rose dramatically, from USD 934.72 to USD 1,642.93 per kilogram.

India's Electric Vehicle reaches new milestone

India's EV sector reached a new high in FY2026, with sales increasing by 83.63% to approximately 2.45 million total units, owing to electric two-wheeler supremacy (more than 1.3 million) and an increase in electric passenger car sales. The market is supported by a 17% YoY growth in registrations to 19.7 lakh in FY 2024-25, as well as the ₹10,900 crore PM E-DRIVE initiative.

Key milestones and market data (as of April 2026):

• More than 2.36 million EVs were sold in 2025, a 16% increase over 2024, with some reports citing up to 2.45 million in FY2026, representing a more than 6% adoption rate.
• Two-Wheeler Electric scooter registrations surpassed 13 lakh by 2025.
• Charging infrastructure is apidly expanding, with over 27,000 public charging stations expected by the end of 2025.
• The PM E-DRIVE initiative subsidies, increasing awareness, and rising gasoline prices are all important reasons.
• Ola Electric, Ather Energy, and TVS Motor are the leaders in two-wheelers, while Tata Motors dominates electric passenger vehicles.
• India desires for 30% EV penetration by 2030, with a long-term objective of 100% adoption.

Digital Transformation of India's Agricultural Trade

By March 2026, 1,656 mandis will have been integrated across 23 states and four union territories.

By March 2026, the eNAM platform had registered more than 1.80 crore farmers, 2.73 lakh dealers, and 4,724 Farmer-Producer Organizations.

Between 2016 and March 2026, commerce totaled 13.25 crore metric tonnes, valued at ₹4.84 lakh crore.

The trade value reached from ₹3.19 lakh crore in 2024 to ₹4.84 lakh crore in 2026, showing increasing scale and deeper market activity.

By March 2026, 204.76 lakh metric tonnes of agricultural produce had been sold in recent periods, indicating a steady operational pace.

The e-NAM app provides mobile price information for 247 commodities.

India's coffee exports reached a record high of $2.13 billion in 2025-26 fiscal.

 

India's coffee exports increased 17% to a record $2.136 billion in the fiscal year ending March 2026, up from $1.82 billion in 2025. According to the latest Coffee Board data, export volumes grew by 4.65% to 4.07 lakh tonnes in FY26, up from 3.88 lakh tons in 2024-25. Exports increased by 22.47 percent, reaching ₹18,887 crore from ₹15,421 crore.

Strengthening India's Fisheries Sector Institutions, Investment, and Inclusion

The Union Budget 2026-27 projected a record-breaking total yearly budgetary support of ₹2,761.80 crore.

PMMSY is a key driver of fisheries development, with a ₹2,500 crore grant for 2026-27.

KCC benefits have reached 4.39 lakh fishers, improving access to institutional financing.

Insurance coverage has been expanded to 3.3 million beneficiaries, improving social security.

Livelihood support has helped about 7.44 lakh fisher families, supporting inclusive growth.

Fish production will reach 197.75 lakh tonnes in FY 2024-25, up from 95.79 lakh tonnes in FY 2013-14, representing a strong 106% rise.

Data center capacity in the country has expanded from approximately 375 MW in 2020 to around 1500 MW by 2025.

The data center sector in India is expanding steadily. The country's overall data center capacity has expanded from approximately 375 MW in 2020 to around 1500 MW by 2025.

Under the AI computing capacity framework, 14 empanelled service providers/data centers have onboarded about 38,231 GPUs to facilitate AI development.

Startups, researchers, universities, and other qualifying users can access these services at a discounted rate of ₹65 per hour. This is almost one-third of the global average cost.

These data centers are located around the country, including Mumbai, Navi Mumbai, Hyderabad, Bengaluru, Noida, and Jamnagar.

The government is aware of the infrastructure requirements of the data centre ecosystem, such as energy and water.

The government's planning process takes into account the predicted electricity demand from the rise of AI and other large-scale data centres. According to the Ministry of Power, electricity demand from data centers is expected to reach 13.56 GW by 2031-32.

India's national transmission system is constantly being extended to meet increasing electrical demand. It is adequately prepared to provide consistent power supply throughout areas.

Parliament recently passed the Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Act, which aims to boost the nuclear energy ecosystem.

India's pharmaceutical sector is a global powerhouse, ranking 3rd in volume and 11th in value.

A March 2026 report by the Press Information Bureau highlights India’s strong position as the “Pharmacy of the World,” ranking 3rd globally by volume and 11th by value. The pharmaceutical sector, valued at $60 billion in 2025, is projected to reach $130 billion by 2030, with a turnover of ₹4.72 lakh crore in FY25. India supplies 20% of global generics and 60% of vaccines to UNICEF. Strong regulation by Central Drugs Standard Control Organization and Indian Pharmacopoeia Commission supports growth, while the Biopharma SHAKTI initiative aims to boost biologics and biosimilars.

Key performance indicators: 

• Pharmaceutical exports totaled $30.5 billion in 2024-25, with 50% going to highly regulated markets such as the United States and the European Union. 
• Drugs and Pharmaceuticals received ₹13,193 crore in FDI for the first half of FY25-26, indicating strong international confidence. 
• PLI Success: As of September 2025, Production Linked Incentive schemes generated ₹40,890 crore in investment and saved imports of ₹3,591 crore in essential APIs and KSMs.
• Recently negotiated or proposed free trade agreements (FTAs) with the EU, the United Kingdom, and New Zealand will give Indian generics and medical devices with zero-duty access to hundreds of tariff lines. 
• As of March 2026, there are around 18,646 Jan Aushadhi Kendras in operating, saving citizens an estimated ₹8,000 crore every year on necessary medicines. 
• Medical device exports are expected to reach $4.1 billion in 2024-25, boosted by specialized medical device parks in Tamil Nadu and Uttar Pradesh.

The Union Cabinet approved the Bharat Industrial Development Scheme with an allocation of Rs 33,660 crore.

 

The Union Cabinet has approved the Bharat Industrial creation Scheme- Bhavya, which will fund the creation of 100 plug-and-play industrial parks for Rs 33,660 crore.

Following a cabinet meeting, Information and Broadcasting Minister Ashwini Vaishnav briefed media in New Delhi on the scheme's goals, which include developing world-class industrial infrastructure, unleashing manufacturing potential, and accelerating national prosperity. He stated that one crore rupees per acre will be spent on establishing industrial parks ranging in size from 100 to 1,000 acres.

The Cotton Corporation of India Limited would get a Minimum Support Price (MSP) of around ₹1,718 crore for the 2023-24 cotton season, as approved by Cabinet. Shri Vaishnav stated that the MSP is set to protect the interests of cotton producers, particularly when market prices fall below the MSP.

The Cabinet also approved the Small Hydro Power Development Scheme for the period 2026-27 to 2030-31, which includes an outlay of more than Rs 2,584 crore for the construction of small hydropower facilities with a capacity of around 1500 MW.

The Cabinet has approved the building of the nearly 101-kilometer-long four-lane National Highway-927 from Barabanki to Bahraich in Uttar Pradesh, at a cost of more than Rs 6,969 crore.

India’s Power Sector - Progress, Reform, and Future

India’s power sector has undergone major transformation with improved capacity, reliability, and access to electricity.

Total installed power capacity reached 520.51 GW (Jan 2026), reflecting strong infrastructure growth.

Power shortages significantly reduced from 4.2% (FY14) to just 0.03% (Dec 2025), indicating improved supply-demand balance.

Government investment of ₹1.85 lakh crore enabled electrification of 18,374 villages and 2.86 crore households.

Financial health of DISCOMs improved:

• Dues reduced from ₹1.4 lakh crore (2022) to ₹4,109 crore (2026)
• Achieved ₹2,701 crore profit in FY25

Expansion driven by policy reforms, regulatory discipline, and institutional strengthening.

Increasing adoption of smart metering is making the system more digital, transparent, and efficient.

Electricity plays a critical role in economic growth - supporting agriculture, industry, healthcare, and digital infrastructure.

Sector transition reflects a shift toward adequacy, sustainability, and reliability in power supply.

Future focus includes modernization, clean energy integration, and enhanced consumer participation.

India's metro expansion: How rapid network growth is improving urban mobility and household financial stability.

India’s metro rail network has expanded rapidly over the past decade, growing from 248 km in 2014 to about 1,095 km by 2025, and the number of metro cities increasing from 5 to 26. This growth has improved urban mobility, reduced congestion and travel time, and provided a faster and more reliable public transport option.

• Major cities with metro systems include Delhi, Mumbai, Bengaluru, Hyderabad, Kolkata, Chennai, Lucknow, Pune and Ahmedabad. The network also includes the 55 km Delhi–Meerut corridor of the Delhi–Meerut Regional Rapid Transit System.

• Since 2014, the government has sanctioned 38 metro projects covering around 1,051 km with an estimated investment of ₹3.44 lakh crore, making India the third-largest operational metro network in the world.

• Several technological milestones have been achieved. The Namo Bharat Train began operations in 2023 with speeds up to 160 km/h. In 2024, India opened its first underwater metro tunnel under the Hooghly River connecting Esplanade and Howrah Maidan. The Kochi Water Metro launched in 2023 using electric-hybrid boats.

• Modern technologies include driverless trains, QR-based ticketing, the National Common Mobility Card, platform screen doors, regenerative braking, and solar-powered stations.

• Metro expansion aligns with national infrastructure initiatives like the PM GatiShakti National Master Plan and the National Infrastructure Pipeline. The Union Budget 2024–25 allocated ₹11.21 lakh crore for capital expenditure.

• Research by the Economic Advisory Council to the Prime Minister shows metro connectivity lowers commuting costs and improves household financial stability, leading to better loan repayment patterns in cities like Hyderabad, Bengaluru, and Delhi.

• Overall, metro expansion is strengthening urban mobility, economic productivity, environmental sustainability, and household financial resilience across India.

MoD signs contracts worth Rs 5,083 crore for ALH Mk-III (MR) and VL-Shtil missiles.

On March 3, 2026, the Ministry of Defence signed contracts totaling Rs 5,083 crore to purchase Surface-to-Air Vertical Launch (Shtil) missiles for the Indian Navy and six Advanced Light Helicopters (ALH) Mk-III (Maritime Role) for the Indian Coast Guard. At South Block in New Delhi, the contracts were signed in front of Defense Secretary Shri Rajesh Kumar Singh.

ALH Mk-III (MR)

Hindustan Aeronautics Limited, Bengaluru has signed a contract worth Rs 2,901 crore for ALH Mk-III (MR), along with operational role equipment, an engineering support package, and performance-based logistics support, under the Buy (Indian-Indigenously Designed Developed and Manufactured) category.

These twin-engine helicopters can perform a variety of maritime security duties from both shore-based airfields and ships at sea, and they include cutting-edge characteristics that are superior to the currently used airborne platforms. The induction will greatly improve the Indian Coast Guard's capacity to carry out its responsibilities for the safety and protection of man-made islands, offshore installations, fishermen, and the marine environment.

More than 200 MSMEs are scheduled to supply equipment for the project, which is anticipated to create about 65 lakh man-hours of employment. The agreement strengthens the country's maritime security framework and reaffirms the government's dedication to Aatmanirbhar Bharat and the Make-in-India drive.

Vertical Launch - Shtil missiles

The Russian Federation's JSC Rosoboronexport has signed a contract worth Rs 2,182 crore to purchase Surface-to-Air Vertical Launch-Shtil missiles and related missile holding frames. The purchase is meant to significantly improve frontline vessels' air defense capabilities against a variety of aerial threats.

By offering quick response, all-weather engagement capabilities, and enhanced survivability in contested maritime settings, the system will strengthen the Indian Navy's layered air defense architecture onboard its platforms. The agreement emphasizes India and Russia's long-standing, tried-and-true defense alliance, which is based on strategic alignment and mutual trust.