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Insurance Sector in India

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ZENITH International Journal of Business Economics & Management Research
Vol.2 Issue 7, July 2012, ISSN 2249 8826 Online available at http://zenithresearch.org.in/

ROLE OF INSURANCE IN ECONOMIC DEVELOPMENT OF INDIA
MONALISA GHOSAL*

ABSTRACT The economic development of India was dominated by socialist –influenced policies, stateowner sector, and red tape and extensive regulations, collectively known as ‘License Raj’. The Indian economic development got a boost through its Economic reforms in 1991 and again through its renewal in the 2000. Insurance serves a number of valuable economic functions that are largely distinct from other types of financial intermediaries. Insurance contribution materially to economic growth by improving the investment climate and promoting a more efficient mix of activities then would be undertaken, in the absence of risk management instrument. Insurance sector in India is one of the most booming sectors of the economy and is growing at the rate of 15-20 percent per annum. In India, insurance is a flourishing industry, with several national and international players competing with each others and growing at rapid rates. Indian insurance companies offer a comprehensive range of insurance plans, a range that is growing as the economy matures and the wealth of the middle classes increases. Due to the growing demand for insurance, more and more companies are now emerging in the Indian insurance sector. The economy of India is the eleventh largest in the world by nominal GDP and the forth largest by Purchasing Power Parity (PPP). KEYWORDS: License Raj, Economic reform, financial intermediaries, Investment climate, Risk management instrument, Comprehensive range, Nominal GDP, PP. ______________________________________________________________________________ INTRODUCTION For economic development investments are necessary. Investments are…...

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