Trade Analytics
Financial Services
Investment corpus in India's pension sector could cross US$ 1 trillion by 2025.

Indian Financial Services Industry Analysis

Latest update: February, 2018



  • The asset management industry in India is among the fastest growing in the world
  • At the end of April 2017, the assets under management of the mutual fund industry stood at US$ 299.04 billion.
  • Inflows in India's mutual fund schemes via the systematic investment plan (SIP) route rose 44 per cent year-on-year to reach a record high of Rs 4,584 crore (US$ 711.17 million) in May 2017.


Last Updated: February, 2018

The country’s financial services sector consists of the capital markets, insurance sector and non-banking financial companies (NBFCs). India’s gross domestic savings (GDS) as a percentage of Gross Domestic Product (GDP) has remained above 30 per cent since 2004. It is projected that national savings in India will reach US$ 1,272 billion by 2019. Over 95 per cent of household savings in India are invested in bank deposits and only 5 per cent in other financial asset classes.

The asset management industry in India is among the fastest growing in the world. Corporate investors accounted for around 43.03 per cent of total AUM in India, while High Net Worth Individuals (HNWI) and retail investors account for 29.65 per cent and 25.25 per cent, respectively. In the Asia-Pacific, India is among the top five countries in terms of HNWIs.

RBI has allowed 100 per cent foreign investment under the automatic route in ‘other financial services’.

The Government of India has launched the 'Bharat 22' exchange traded fund (ETF), which will be managed by ICICI Prudential Mutual Fund, and is looking to raise Rs 8,000 crore (US$ 1.22 billion) initially.

The Securities and Exchange Board of India (SEBI) has allowed exchanges in India to operate in equity and commodity segments simultaneously, starting from October 2018.

India’s equity market turnover has increased significantly in recent years. The annual turnover value in the National Stock Exchange (NSE) witnessed a CAGR of 19.13 per cent between FY 96 and FY 17 to reach US$ 790 billion. During the month of January 2018, equity mutual funds have registered a record net inflow of Rs 13,404 crore (US$ 2.07 billion).

The Government of India has taken various steps to deepen the reforms in the capital markets, including simplification of the Initial Public Offer (IPO) process which allows qualified foreign investors (QFIs) to access the Indian bond markets.

Sectoral Presentation (February, 2018)

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