Indian Financial Services Industry Analysis

The assets under management growth is expected to double to US$ 1,207 billion (Rs. 100 trillion) by 2030 implying a CAGR of 14% from FY24 to FY30.

Advantage India

Growing
Demand

*The AUM of the Indian MF Industry has grown from Rs. 9.16 trillion (US$ 110.63 billion) in 2014, to Rs. 64.97 trillion (US$ 780.70 billion) in July 2024, growing ~6x in a span of 10 years.​

*Investment corpus in Indian insurance sector might rise to US$ 1 trillion by 2025.​

*With >2,100 fintechs operating currently, India is positioned to become one of the largest digital markets with rapid expansion of mobile and internet. ​

Growing Demand

Innovation

*India benefits from a large cross-utilization of channels to expand reach of financial services.​

*Emerging digital gold investment options.​

*In the Union Budget 2022-23 India announced plans for a Central Bank Digital Currency (CBDC) which will be known as Digital Rupee.​

Innovation

Policy
Support

*FDI sectoral cap in the insurance sector has been revised from 49% to 74% under the automatic route. The Union Budget 2025 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.​

*International Financial Services Centres Authority (Banking) Regulations, 2020, are expected to drive and facilitate the constituent operations in the IFSC and help the sector reach its potential.​

Policy Support

Growing
Penetration

*Credit, insurance and investment penetration is rising in rural areas.​

*HNWI participation is growing in the wealth management segment.​

*Lower mutual fund penetration of 5-6% reflects latent growth opportunities.​

Growing Penetration
Last updated: Apr, 2025

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