India’s financial services sector is undergoing a significant transformation, reflecting the country’s growing economic strength and commitment to financial inclusion. Covering capital markets, insurance, and a vibrant network of non-banking financial companies (NBFCs), the sector is seeing strong momentum fuelled by rising domestic savings, an expanding base of high-net-worth individuals, record mutual fund assets under management, and a surge in IPO activity. Policy reforms and digital innovations, such as the introduction of the Digital Rupee and efforts to simplify the IPO process, are further shaping this evolution. Together, these developments are building a resilient and globally competitive financial ecosystem that supports India’s broader economic growth ambitions.

In 2023, India’s gross savings stood at 30.2% of GDP. The number of Ultra High Net Worth Individuals (UHNWI) is estimated to increase from 12,069 in 2022 to 19,119 in 2027. India’s UHNWIs are likely to expand by 63% in the next 5 years. India is expected to have 16.57 lakh HNWIs in 2027.

As of March 2025, AUM managed by the mutual funds industry stood at Rs. 65.7 trillion (US$ 767.5 billion) which is more than 6-fold increase in the span of 10 years.

In FY25, a total of 318 IPO was launched raising Rs. 1.72 trillion crore (US$ 20.09 billion).

In the agriculture sector, the DFS has facilitated record credit disbursements, with Agricultural Credit increasing from Rs. 8.45 lakh crore in FY15 to Rs. 24.30 lakh crore (US$ 283.8 billion) in FY24.

Indian stock market Sensex reached high of 81,596 on May 21, 2025.

In FY25, the number of listed companies on the NSE and BSE were 2,629, and 5,595 respectively.

As of December 2024, India has 8.56 lakh HNWIs. It is expected to have 9.37 lakh HNWIs by CY28.

In FY25, premiums from new businesses of life insurance companies in India stood at Rs. 3,23,568 crore (US$ 37.8 billion).

UPI transactions surged to a record 17.89 billion in April 2025, value at Rs. 23.94 trillion (US$ 279.67 billion).

India’s foreign exchange reserves rose by Rs. 38,927 crore (US$ 4.55 billion) to Rs. 59,03,369 crore (US$ 690.61 billion) for the week ended May 9, 2025, primarily driven by a significant increase in gold assets, the Reserve Bank of India (RBI) reported.

The Indian passenger vehicle market registered record wholesales of 43 lakh units in FY25.

About 18% of assets in the mutual fund industry were generated from B30 locations in April 2024. These assets increased by 3%, from Rs. 9.83 lakh crore (US$ 118.13 billion) in March 2024 to Rs. 10.16 lakh crore (US$ 122.10 billion) in April 2024.

The Government of India has taken various steps to deepen reforms in the capital market, including simplification of the IPO process, which allows qualified foreign investors (QFIs) to access the Indian bond market. In 2019, investment in Indian equities by foreign portfolio investors (FPIs) touched a five-year high of Rs. 101,122 crore (US$ 14.47 billion).

According to the 2024 Burgundy Private Hurun India 500 report, India’s top 10 most valuable companies now have a combined market value of Rs. 95,64,500 crore (US$ 1.1 trillion), surpassing the entire Gross Domestic Product (GDP) of Saudi Arabia. 

The number of companies listed on the BSE increased from 135 in 1995 to 5,328 as of February 23, 2025.

In the Union Budget 2025-26, the Ministry of Finance was allocated Rs. 19,39,000 crore (US$ 224.94 billion). The tax exemption limit is now Rs. 12 lakh (US$ 13,841) and Rs. 12.75 lakh (US$ 14,706) for salaried individuals with a Rs. 75,000 (US$ 865) standard deduction, with no changes in old regime slabs, while TDS thresholds have been raised, including the senior citizens' interest income limit doubled to Rs. 1 lakh (US$ 1,153) and rent TDS threshold increased to Rs. 6 lakh (US$ 6,920); the remittance limit under the Liberalized Remittance Scheme (LRS) has been raised from Rs. 7 lakh (US$ 8,074) to Rs. 10 lakh (US$ 11,534), TCS on education-related remittances for loans from specified financial institutions has been removed, and delays in TCS payments up to the due date of filing statements are now proposed to be decriminalized, similar to TDS rules.

In the Union Budget 2023-24, India announced to set up the National Financial Information Registry which shall serve as the central repository of financial and ancillary information to facilitate the efficient flow of credit, promoting financial inclusion, and fostering financial stability. A new legislative framework is to be designed in consultation with RBI to govern this credit public infrastructure.

In the Union Budget 2022-23, India has announced plans for a central bank digital currency (CBDC) which will be known as Digital Rupee. E-rupee is a QR code or SMS string-based e-voucher that is sent to the beneficiary’s cell phone. Users of this one-time payment mechanism will be able to redeem the voucher at the service provider without the usage of a card, digital payments app, or Internet banking access.

India’s insurance industry has huge growth potential. India’s insurance market is expected to reach US$ 250 billion by 2025. It also offers an opportunity of US$ 78 billion of additional life insurance premiums between 2020-30.