INDIAN FINANCIAL INDUSTRY AT A GLANCE IN 2022 - 2023
India’s financial services industry has experienced huge growth in the past few years.
Fin-tech MarketIndia has emerged as one of the fastest-growing fintech markets in the world with a market size estimated at about US$ 150 billion by year 2025. With more than 2,100 fin-techs operating currently, India is positioned to become one of the largest digital markets. In the Union Budget 2022- 23 India announced plans for a central bank digital currency (CBDC) which will be known as Digital Rupee, further boosting the Financial Services industry in the country.
Another major component of India’s financial industry is the insurance industry. The insurance industry has been expanding at a fast pace in India, in particular after the Covid pandemic. The total first-year premium of life insurance companies reached US$ 32.04 billion in FY23. In FY23,non-life insurance sector premiums reached US$ 22.5 billion (Rs. 1.87 lakh crore). India’s insurance market is also expected to reach US$ 250 billion by 2025. This will further offer India an opportunity of US$ 78 billion in additional life insurance premiums from 2020-30.
IPOs and Stock MarketIn FY23, US$ 7.17 billion was raised across 40 initial public offerings (IPOs). The number of companies listed on the NSE increased from 135 in 1995 to 2,113 by FY23.
According to Goldman Sachs, investors have been pouring money into India’s stock market, which is likely to reach more than US$ 5 trillion, surpassing the UK, and become the fifth- largest stock market worldwide by 2024.
Other financial ServicesIndia’s private wealth management Industry shows huge potential. India is expected to have 6.11 lakh HNWIs by 2025. This will indeed lead India to be the fourth-largest private wealth market globally by 2028.
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 2022-2023, while mobile wallet transactions will touch US$ 388.8 billion (Rs. 32 trillion) during the same period.