Significant progress marks India’s journey in social security, as pension and insurance coverage have accelerated sharply. Detailed in the Economic Survey released Thursday by Finance Minister Nirmala Sitharaman in Parliament, these gains highlight systemic reforms.
IRDAI and PFRDA’s proactive measures have intensified financial penetration, prioritizing protection for marginalized communities and driving equitable growth.
PFRDA’s architecture features a diversified pension ecosystem: NPS for investment flexibility, UPS from 2025 with government support, plus EPF and APY for mass inclusion.
As of December 2025, NPS served 21.17 million accounts with ₹16.1 lakh crore AUM. Decade-long growth shows 9.5% CAGR in subscribers and 37.3% in AUM from FY15-FY25. APY exploded with 43.7% subscriber and 64.5% AUM CAGR since 2016.
Insurance is reimagining itself for universal coverage by 2047. IRDAI’s regulatory evolution emphasizes principles over rigidity, freeing companies for innovation while upholding standards.
‘Insurance for All’ reforms digitize operations, broadening reach. Health insurance now rules non-life at 41% premiums, eclipsing motor, with claims soaring 70% to ₹1.9 lakh crore by FY25.
Life segment dominates with 91% AUM, 75% premiums, and ₹6.3 lakh crore payouts in FY25. GST exemptions enhance affordability, and the 2025 Act’s FDI hike to 100% alongside tweaks will streamline operations.
Overall, the survey underscores a fortified social safety apparatus, poised to underpin sustainable development and resilience.