ICRA

The life insurance industry in India is set to witness a robust expansion, with rating agency ICRA forecasting a 9% increase in new business premium (NBP) for the current fiscal year. This growth is attributed to strong retail demand, increasing awareness of financial planning, and improved product distribution channels. Analysts note that both traditional and unit-linked insurance plans (ULIPs) are contributing to the upward trajectory, reflecting consumer confidence in long-term savings and protection products.

India’s economy is projected to grow at a more tempered pace in the second quarter, with ICRA estimating GDP expansion to moderate to 7 percent. The rating agency attributes this deceleration to a normalizing base, slower industrial output, and softer consumption indicators after an exceptionally strong start to the fiscal year. While the economy remains resilient compared with global peers, mixed signals in manufacturing activity, uneven monsoon patterns, and cautious discretionary spending are likely to influence overall momentum.

India’s solar manufacturing sector, once buoyed by rapid capacity additions and strong policy support, is now entering a phase of consolidation. According to a recent report by credit rating agency ICRA, a sharp rise in domestic manufacturing capacity for solar photovoltaic (PV) modules and cells is expected to outpace near-term demand, leading to heightened competition and pressure on profit margins.

India’s electricity demand is poised for sustained growth through FY26, driven by industrial expansion, urbanization, and rising household consumption, according to a recent forecast by ICRA. The credit rating agency anticipates a steady increase in peak load requirements and overall energy consumption, reflecting robust economic activity and increased electrification. Renewable energy integration, government infrastructure initiatives, and digital adoption in the energy sector are expected to further support demand growth.

India’s gold loan sector is poised for significant expansion, with ICRA projecting the market to reach Rs 15 lakh crore by 2026. This growth is driven by rising consumer demand for quick, collateral-backed credit, especially in semi-urban and rural regions, coupled with stable gold prices and increasing financial inclusion. Banks and non-banking financial companies (NBFCs) are actively expanding their gold loan portfolios, leveraging digital platforms for faster disbursals.

India’s two-wheeler market is poised for moderate expansion, with ICRA projecting a 6–9% growth in sales for FY26. Driven by robust rural demand, urban replacement cycles, and improving consumer sentiment, the sector is expected to maintain steady momentum despite macroeconomic uncertainties. Electric two-wheelers are emerging as a key growth driver, supported by government incentives and rising environmental awareness. The forecast underscores the resilience of India’s automotive industry, reflecting both structural demand dynamics and policy support.

India’s mutual fund industry has exhibited remarkable growth and sustained resilience, according to recent findings by ICRA. The report highlights a surge in average assets under management (AUM), driven by strong retail participation, consistent SIP inflows, and robust equity market performance. Despite global macroeconomic headwinds and domestic uncertainties, the sector’s fundamentals remain sound. The growing appeal of passive investment strategies, increased digitization, and evolving investor behavior are shaping the future of India’s asset management landscape.

ICRA has revised the outlook for the telecom tower sector from negative to stable, attributing the shift to significant improvement in receivables management and timely payments from telecom operators. The industry, previously burdened by elongated receivables due to delayed payments, now reports a reduction in collection periods to 45-60 days—well below ICRA's risk threshold of 80 days. This turnaround has strengthened liquidity profiles and reduced dependency on external borrowings.