India’s social security landscape is transforming dramatically, with pension and insurance penetration reaching new heights in recent years. The latest Economic Survey, tabled in Parliament by Finance Minister Nirmala Sitharaman, paints an optimistic picture of these advancements.
PFRDA and IRDAI have been at the forefront, implementing reforms to deepen financial inclusion and shield vulnerable groups. Their initiatives have woven a safety net that now encompasses vast swathes of the population.
A multi-layered pension system stands as a cornerstone. The NPS offers market-linked returns, complemented by the 2025-launched UPS, EPF, and APY for extensive coverage.
NPS subscriber base hit 21.17 million by end-2025, managing ₹16.1 lakh crore in assets. From FY15 to FY25, subscribers compounded at 9.5% annually, with AUM exploding at 37.3%. APY, post-2016, saw 43.7% subscriber CAGR and 64.5% AUM growth.
The insurance sector aligns with the ‘2047 Insurance for All’ goal. IRDAI’s shift to principle-based regulation reduces red tape, boosts compliance, and spurs insurer creativity. Digital amendments under ‘Sabka Bima Sabki Raksha’ enhance accessibility.
Non-life insurance sees health policies lead with 41% premium share, surpassing motor. Claims jumped 70%+ to ₹1.9 lakh crore in FY25, driven by health and vehicle segments.
Life insurance commands 91% AUM and 75% premiums, disbursing ₹6.3 lakh crore in FY25 benefits. Tax relief via GST waivers on key policies lowers costs, while the 2025 Act’s 100% FDI unlock promises accelerated growth.
These developments herald a new era of security, blending innovation with inclusivity to fortify India’s economic foundation against uncertainties.
