Economy

A striking feature of the quarter was the dominance of domestic investors, who accounted for about 96% of total inflows

He said India is already among the world’s top three domestic aviation markets and continues to grow at a rapid pace. Passenger traffic reached around 412 million in 2025, reflecting strong momentum in domestic air travel, while the wider sector is being backed by more than 1,000 aircraft orders, signalling confidence in long-term demand.

The official note said India is now the world’s 10th largest insurance market by premium volume. During FY 2024-25, the sector issued 41.84 crore policies, collected premiums worth ₹11.93 lakh crore, paid claims of ₹8.36 lakh crore and reported assets under management of ₹74.44 lakh crore. Insurance penetration stood at 3.7%, while insurance density rose to USD 97 per person.

Operationally, the picture was more mixed. Net sales of these FDI companies grew 8.7% in 2024-25, lower than 9.4% in the previous year. The moderation was sharper in manufacturing, where sales growth eased to 5.1% from 6.8%, while the services sector performed better, with growth inching up to 12.7%.

The export surge was supported by the rapid scale-up of production in India by global technology majors such as Apple and Samsung, alongside broader efforts to position the country as an export-oriented manufacturing hub.

The report said economies in South and South-West Asia grew 5.4% in 2025, up from 5.2% in 2024, and noted that the improvement was driven largely by India’s strong performance. It added that India’s growth had accelerated to 7.4% in 2025, supported by robust consumption, especially in the rural economy, along with GST rate cuts and export front-loading ahead of U.S. tariff actions.