Relationship between Insurance and Economic Growth in India

Author: Aadesh Kumar Chaudhary*a, A.K. Pokhriyalb aH N B Garhwal University, Srinagar, (Uttrakhand), India Email id : chaudharyade2010@gmail.com bH N B Garhwal University, (Uttrakhand), India

Abstract:
For economic development, investments are necessary; investments are made out of savings. Insurance Company is a major instrument for the mobilization of savings of people particularly from the middle and lower income groups. The savings of peoples convert into investment by insurance company for economic growth. The object of the study is to find the relation between insurance sector and Indian economical growth. How much contribution of insurance is in economical development of country and what is the future expectation growth in economy through insurance sector? On the basis of this study the result come out that insurance sector has a strong relation with India’s economic growth and insurance sector contributed by 14 % approximately in Indian GDP. Contribution of insurance industry has increase year by year in Indian GDP. Only five percent Indian population insured so that insurance industry have a lot of scope in Indian for future growth.

Keywords:Insurance, GDP, Economy, contribution, life insurance.

DOI:

International Journal of Trade & Commerce (Vol: 4 Issue:2)