The projection comes at a time when India’s insurance sector is undergoing a period of steady transformation. Moody’s said a faster-growing economy typically creates a virtuous cycle for insurers, as higher incomes translate into better affordability of premiums, improved persistency ratios and stronger demand across both retail and corporate segments. The agency added that economic expansion also helps improve insurers’ investment income, as stronger growth supports capital markets and improves the quality of credit portfolios. In a broader context, the 7.3% growth projection reinforces confidence in India’s economic resilience despite global uncertainties. If the growth momentum is maintained, it is likely to not only support the insurance sector but also deepen India’s broader financial ecosystem, strengthening household balance sheets and long-term economic stability.

Source: Indian Express January 19, 2026 11:13 UTC