The financial Industry in India is generally a banking sector with commercial banks accounting for more than 64% of the total assets held by the financial system. 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 Indian economy is very robust in recent times backed by strong banking and insurance sectors. Thanks to this the Indian Financial inudstyr happens to receive much foreign investments as well.
In FY 2022, AUM (Assets Under Management) managed by the mutual funds industry stood at Rs. 38.89 trillion (US$ 518.15 billion) and the total number of accounts stood at 123.1 million.
Equity mutual funds registered a net inflow of Rs. 22.16 trillion (US$ 294.15 billion) by end of December 2021.
Insurance is another important arm of the Indian Financial sector. The total first-year premium of life insurance companies reached US$ 37.1 billion in FY21. In FY22, premiums from new businesses of life insurance companies in India stood at US$ 17.6 billion. In the first 10 months of FY22, Non-life insurance sector premiums reached at Rs. 1.82 lakh crore (US$ 24.18 billion).
In FY21, US$ 4.25 billion was raised across 55 initial public offerings (IPOs). The number of companies listed on the NSE increased from 135 in 1995 to 1,920 by December 2021.
The National Stock Exchange of India Ltd. (NSE) emerged as the world’s largest derivatives exchange in 2021 in terms number of contracts traded. NSE was ranked 4th worldwide in cash equities by number of trades in the current year.Industry Forecast
India is expected to have 6.11 lakh HNWIs (High Net Worth Individuals) in 2025. India is expected to be the fourth largest private wealth market globally by 2028.
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 from 2020-30.
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.