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144 Economic Survey 2021-22

Developed Market

S&P 500, US 3,973 4,766 45.3 20.0
Nasdaq Composite, US 13,247 15,645 67.4 18.1
CAC 40, France 6,067 7,153 26.3 17.9
Dow Jones Industrial Average, US 32,982 36,338 39.6 10.2
FTSE 100, UK 6,714 7,385 13.9 10.0
DAX, Germany 15,008 15,885 38.1 5.8
Straits Times, Singapore 3,165 3,124 14.6 -1.3
Nikkei 225, japan 29,179 28,792 45.1 -1.3
Hang Seng, Hong Kong 28,378 23,398 15.4 -17.6

Source: Refinitiv Datastream
4.45 During April-December 2021, India VIX, which indicates market’s expectation of
volatility in near term i.e. next 30 calendar days, peaked to 23.7 on 3 May 2021 and started
rd
reducing subsequently. It picked up briefly in November 2021 before reducing again. Overall,
VIX decreased 21.4 per cent during April-December 2021.

Figure 19: India VIX

25

20

15

10

5
Apr-21 May-21 May-21 Jun-21 Jul-21 Aug-21 Sep-21 Oct-21 Nov-21 Dec-21

Source: NSE
INSURANCE SECTOR

4.46 Internationally, the potential and performance of the insurance sector are generally assessed
on the basis of two parameters, viz., insurance penetration and insurance density. Insurance
penetration is measured as the percentage of insurance premium to GDP and insurance density
is calculated as the ratio of premium to population (measured in US$ for convenience of
international comparison).

4.47 In India, insurance penetration was 2.71 per cent in 2001 and has steadily increased to 4.2
per cent in 2020. As of 2020, the penetration for life insurance in India is 3.2 per cent and non-
life insurance penetration is 1 per cent (Table 15 and 16). While India is at par with international
average in terms of insurance penetration for life insurance, we lag behind in terms of non-life