India's asset, wealth management industry to reach $1.7 trillion by 2030: Report
New Delhi, June 25
India's asset and wealth management industry is projected to reach $1.7 trillion in assets under management by 2030, up from $0.9 trillion in 2024, implying a compound annual growth rate of 11.6 per cent, a report said on Thursday.
The growth in asset and wealth management industry is driven by parallel growth in institutional capital pools and retail financialisation, the report from PwC said.
It further highlighted that India's rapid growth outlook sits within a broader Asia‑Pacific rise, in which regional AuM is forecast to climb from $23.2 trillion in 2024 to $34.5 trillion by 2030 at a 6.8 per cent CAGR.
India's pace is faster than the regional average, but converting that headline opportunity into profitable, sustainable AuM will require operating model choices that are specific to the Indian market.
The report highlighted public digital infrastructure, steady regulatory reform and the emergence of GIFT City as contributors to deepening the capital base.
India's path to $1.7 trillion in AWM assets by 2030 reflects a deepening domestic capital base, wider participation in formal financial markets, and the gradual channelling of household savings into long-term investment, said Vivek Prasad, Chief Commercial Officer and Financial Services Leader, PwC in India.
India has 78-80 per cent banked penetration, UPI processes US$2.5 trillion in transactions annually, and there are 1.4 billion Aadhaar digital IDs in circulation.
The disintermediation of bank distribution by discount brokers has contributed to 192 million demat account holders, while monthly SIP inflows exceeding $3 billion translate into around $36 billion of annual equity flow.
Over 40 per cent of new SIPs now originate from Tier 2, 3, and 4 cities, indicating that participation is broadening beyond the metros - though average ticket sizes and product complexity in these segments remain modest.
On the institutional side, the Employees Provident Fund Organisation ($280 billion), the National Pension System (with PFRDA targeting $1 trillion by 2030), and insurance assets ($650 billion) are gradually expanding their equity, alternatives, and global allocations.
— IANS
Reader Comments
$1.7 trillion by 2030 sounds impressive, but let's not forget the risks. With so much money flowing into markets, what happens when there's a global downturn? We saw in 2008 how fast things can unwind. Also, 192 million demat accounts is huge but many are inactive. Need to focus on quality of participation, not just quantity.
Interesting comparison with global trends. India growing at 11.6% CAGR vs Asia-Pacific at 6.8% is really something. But I'm curious about the regulatory environment - GIFT City is mentioned as a contributor, but how easy is it for foreign investors to participate? The article doesn't address that friction point.
As someone who started SIPs in 2019, I can tell you the behavioral shift is real. My parents never invested in stocks but now my mom does small SIPs from her savings. The report's point about 40% of new SIPs from smaller cities is spot on! But we need better advisory for these investors, not just discount brokers pushing products.
The scale is undeniable - $2.5 trillion in UPI transactions annually, 1.4 billion Aadhaar IDs, $280 billion in EPFO alone. But here's a critical thought: is this growth sustainable if inflation erodes real returns? And with $36 billion of annual equity flow from SIPs, if markets correct 20%, that's a lot of new investors facing losses for the first time.
The comparison with global markets is encouraging - India outpacing the region. But I
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