Indian Financial Industry


Indian Financial Industry INDIAN FINANCIAL INDUSTRY AT A GLANCE IN 2020 - 2021Indian Financial Industry

India would be the fourth largest private wealth market globally by year 2028.

The Indian Financial industry consists of commercial banks, insurance companies, non-banking financial companies, co-operatives, pension funds, mutual funds and other smaller financial entities.

The financial sector in India is predominantly a banking sector with commercial banks accounting for more than 64% of the total assets. The Government of India and Reserve Bank of India (RBI) has introduced several reforms to liberalise, regulate and enhance the financial industry.

2020-2021 Indian Financial Industry
Industry Size

As of March 2021, the Assets under Management (AUM) managed by the mutual funds industry stood at to Rs. 3,142,764 crore (US$ 425.87 billion). Inflow in India's mutual fund schemes via systematic investment plan (SIP) were Rs. 96,080 crore (US$ 13.12 billion) in FY21. Equity mutual funds registered a net inflow of Rs. 8.04 trillion (US$ 114.06 billion).

Another major component of India’s financial industry is the insurance industry. Insurance industry has been expanding at a fast pace in India, thanks to more disposable income and better awareness. The total first year premium of life insurance companies reached Rs. 2.59 lakh crore (US$ 36.73 billion) in FY20.

   Industry Forecast
  The Association of Mutual Funds in India (AMFI) is targeting nearly five-fold growth in AUM to Rs. 95 lakh crore (US$ 1.47 trillion)
  and more than three times growth in investor accounts to 130 million by 2025.
  India's mobile wallet industry is estimated to grow at a Compound Annual Growth Rate (CAGR) of 150% to reach US$ 4.4
  billion by 2022, while mobile wallet transactions will touch Rs. 32 trillion (USD$ 492.6 billion) during the same period.