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.
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.
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.