The country’s financial services sector consists of capital markets, the insurance sector and Non-Banking Financial Companies (NBFCs). 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.

India’s Mutual Fund industry has experienced immense growth. In FY25 (until January 2025), AUM managed by the mutual funds industry stood at Rs. 68.05 Lakh Crore (US$ 789.44 billion).

Inflow in India's mutual fund schemes via Systematic Investment Plans (SIP) from April 2024 to January 2025 stood at Rs. 2,37,427 crore (US$ 27.54 billion).

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).

Investment by FPIs in India’s capital market reached a net Rs. 11,631 crore (US$ 1.42 billion) in April 2023. Investment by FPIs in India’s capital market reached a net Rs. 12.52 lakh crore (US$ 177.73 billion) between FY21 (till August 10, 2020).

In first half of FY25, a total of 40 IPO was launched raising Rs. 51,365 crore (US$ 6.17 billion).

India’s market capitalization had surged by 25% from October 2021, it was at US$ 3.15 trillion. Indian stock market rally made investors Rs. 80.62 lakh crore (US$ 973.67 billion) in 2023. Sensex reached high of 80,234 on November 27, 2024.

The number of Demat accounts in India reached 175 million in September 2024.

According to Goldman Sachs, investors have been pouring money into India’s stock market, which is likely to reach >US$ 5 trillion, surpassing the UK, and become the fifth-largest stock market worldwide by 2024.

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 September 2021, the international branch of the National Payments Corporation of India (NPCI), NPCI International Payments (NIPL), teamed with Liquid Group, a cross-border digital payments provider, to enable QR-based UPI payments to be accepted in 10 countries in the north and southeast Asia.

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. In August 2021, Prime Minister Mr. Narendra Modi launched e-rupee, a personal and purpose-specific digital payment solution. 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.

In July 2021, Rajya Sabha approved the Factoring Regulation (Amendment) Bill in 2020, enabling ~9,000 NBFCs to participate in the factoring market. The bill also gives the central bank the authority to establish guidelines for improved oversight of the US$ 6 billion factoring sector.

In July 2021, India's largest commodities derivatives exchange, Multi Commodity Exchange of India Ltd., and European Energy Exchange AG (EEX) signed a Memorandum Of Understanding (MOU) with the goal of knowledge sharing and expertise exchange on electricity derivative products. This MoU will make it easier for the two exchanges to collaborate in areas including knowledge sharing, education and training, and event planning in the field of electricity derivatives.

In January 2021, the National Stock Exchange (NSE) launched derivatives on the Nifty Financial Service Index. This service index is likely to provide institutions and retail investors more flexibility to manage their finances.

In January 2021, the Central Board of Direct Taxes launched an automated e-portal on the e-filing website of the department to process and receive complaints of tax evasion, foreign undisclosed assets and register complaints against ‘Benami’ properties.

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.