Robust banking and insurance sectors back the Indian economy. The Indian banking sector has public sector banks, private sector banks, foreign banks, rural banks, urban cooperative banks, and rural cooperative banks.
India has a diversified banking and financial industry in terms of established financial services businesses' and new arrivals into the market. The Indian commercial banks account for 64% of the total financial system assets.
Reasons for Investing
- In the next decade, India is expected to be the world's fourth-largest private wealth market.
- More than 425.5 million of bank accounts opened under the government's 'Pradhan Mantri Jan Dhan Yojana (PMJDY)' financial inclusion scheme
- Increase in bank credits at a CAGR of 3.57% and deposits grew at a CAGR of 13.93%
- Merger and Acquisition activities worth US$ 1.72 billion were witnessed in the recent times
- The overall investment corpus in the insurance sector is predicted to reach 1 trillion USD
- Increase in insurance sector FDI limit from 46% to 74%
- WhatsApp has recently introduced UPI payments in the Indian market. Google Pay has partnered with digital lending platforms for MSMEs to allow small business owners to access credits through the FlexiLoans
- A record high of 3.25 billion Unified Payments Interface (UPI) transactions worth US$ 81.48 billion was registered
Industry Growth Factors
- Increase in demand for financial services across all working classes as disposable income increases
- Better credit, insurance, and investment penetration in rural markets with innovative banking models like payment and small finance banks
- Increased operational efficiency with mobile internet banking and ATM add on services
- Significant boost in the number of digital transactions owing to Reserve Bank of India's (RBI) 'Payment Systems Vision 2021.'
- Growth in wealth management segment with increased HNWI participation (High Net Worth Individual)
- Retail investors granted access to the government securities market
- Systematic Investment Plans (SIP) increases cash inflow in India's mutual fund schemes
- Technology infrastructure upgrade to enhance the overall banking experience
- Vast population without access to bank accounts provides innovation scope in delivery
- Policies supporting private sector participation and liquidity infusion
TIGS brings out the best solutions to assist your business in finding the right way forward to penetrate the Indian market. We are a one-stop solution to make the right trade and investment decisions in India as per your business needs.
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