Moody’s Ratings has projected India’s GDP to grow 7.3% in FY26 (year ending March 2026), saying the strong economic momentum will raise average household incomes and drive higher demand for insurance products.

In its latest report on India’s insurance sector, Moody’s noted that the industry is poised for sustained premium growth, supported by robust economic expansion, rising digitisation, tax changes, and planned reforms in the state-owned insurance segment.

According to Moody’s, this growth outlook is also expected to improve the sector’s currently weak profitability.

Moody’s said it expects India’s economy to expand from 6.5% last year to 7.3% in FY26, which will strengthen household incomes and increase the need for insurance protection.