Advantage India
Growing
Demand
*India’s accounting and professional services market is expanding steadily, reflecting strong demand in the financial services sector. As per a Mordor Intelligence report (January 28, 2026), the market is estimated at Rs. 1.47 lakh crore (US$ 15.97 billion) in 2026 and projected to reach Rs. 1.82 lakh crore (US$ 19.66 billion) by 2031 (CAGR 4.25%), driven by stricter compliance norms and rising adoption of technology-led financial and advisory services.
*Rising income is driving the demand for financial services across income brackets.
*India’s financial services sector is projected to nearly double profits by FY30, led by NBFCs growing at 16% annually. Growth drivers include retail credit, wealth management, payments, and insurance.
Innovation
*On January 27, 2026, India’s financial services sector is witnessing strong innovation-led growth, driven by rapid digital adoption, AI, and fintech expansion. With over 14,500 fintech firms and robust digital infrastructure, the sector is becoming increasingly digital-first across banking, insurance, and wealth management, supporting higher efficiency and profitability outlook towards FY30.
*India benefits from a large cross-utilisation of channels to expand reach of financial services.
Policy
Support
*On January 21, 2026, the Union Cabinet approved Rs. 5,000 crore (US$ 553.6 million) equity support to SIDBI to strengthen MSME financing. The move will enhance lending capacity, support around 102 lakh MSMEs by FY28, and expand access to affordable credit reinforcing policy support and growth in India’s financial services sector.
*FDI sectoral cap in the insurance sector has been revised from 49% to 74% under the automatic route. The Union Budget 2025-26 also announced the further increase of FDI sectoral cap for the insurance sector from 74% to 100%. This enhanced limit will be available for those companies, which invest the entire premium in India.
Growing
Penetration
*India’s BFSI sector has expanded significantly, with market capitalisation rising 50-fold from Rs. 1.8 trillion (US$ 40.82 billion) in 2005 to Rs. 91 trillion (US$ 1.05 trillion) in 2025, as per a November 2025 report. Its GDP share increased from 6% to 27%, driven by growing financialisation and deeper penetration across retail investors, NBFCs, fintech, insurance, and mutual funds, particularly in smaller cities.
*Credit, insurance and investment penetration is rising in rural areas.
*HNWI participation is growing in the wealth management segment.
Muthoot Finance
Muthoot Finance Limited is a gold financing company. The company is a non-banking financial company (NBFC) that provides loans (financing) against the collateral of gold jewellery. The company operates through two segments: financing and power generation. The company provides personal and business loans (secured by gold jewellery) primarily to individuals having no access to formal credit for a reasonable tenure to meet their short-term working capital requirements. The company offers gold loans, foreign inward money transfer services, foreign exchange services, insurance broking, home loans, personal loans, collection services, microfinance, windmill power generation, white label automated teller machine, instant money transfer services and domestic money transfer services. The company has a network of more than 6,100+ branches all over India. In Sri Lanka, the company offers corporate loans, mortgage loans, factoring, business loans and short-term loans among others.
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Bajaj Finserv Ltd
Bajaj Finserv Limited is a holding company for various financial services businesses. The company is engaged in the business of promoting financial services, such as finance, insurance, and wealth management, through its investment in subsidiaries and Joint Ventures (JVs). The company is also engaged in the business of generating power through wind turbines, a renewable source of energy. Its segments include insurance, windmill, retail financing, investments and others. The company is also involved in wind-farm activities. The company focuses on six categories: consumer lending, Small and Medium Enterprise (SME) lending, commercial lending, rural lending, fixed deposits, and value-added services. It serves various customers in the financial services space by providing solutions for asset acquisition through financing, asset protection through general insurance, family protection and income protection in the form of life and health insurance, and retirement and savings solutions.
Read MoreICICI Prudential Life Insurance Company
ICICI Prudential Life Insurance Company Limited is a joint venture between ICICI Bank Limited and Prudential Corporation Holdings Limited. The company provides life insurance, pensions and health insurance to individuals and groups. It conducts business in participating, non-participating and unit-linked lines of businesses. Its segments include par life, par pension, non-par, annuity non-par, health, linked life, linked pension, linked health, and linked group. It offers term plans such as ICICI Pru iProtect Smart; Unit-Linked Insurance plans (ULIPs) such as ICICI Pru Wealth Builder II and ICICI Pru Elite Life II; child education insurance plans such as ICICI Prudential SmartKid with Smart Life; retirement plans such as ICICI Pru Easy Retirement; traditional savings/money back plans such as ICICI Pru Cash Advantage and ICICI Pru Savings Suraksha; and Health insurance. It offers products on retail, mortgage, and group platforms.
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