Synopsis: The wealth management market in India will grow by almost double to ₹160.19 lakh crore by 2030 from ₹84.81 lakh crore in 2024, driven by improved financial inclusion and high digitalisation. The growth rate in the industry has been significantly higher than the industry growth in the Asia Pacific region, driven by UPI, demat and SIP.
Asset and wealth management (AWM) industry in India is expected to see radical growth in the near few years. As per a recent report to notice by IBEF (India Brand Equity Foundation), the assets under management in the country are likely to increase from the current ₹84.81 lakh crore (US$0.9 trillion) in 2024 to ₹160.19 lakh crore (US$1.7 trillion) by 2030 nearly doubling in size. The increase is an indicator of the rising financial inclusion, investment culture and India’s share in the global financial system.
A Growth Rate That Outpaces the Region
It’s not only the numbers for this projection, but how fast they’re growing. The compound annual growth rate (CAGR) of India’s AWM sector is projected to reach approximately 11.6% until 2030 compared to 6.8% for the Asia Pacific region as a whole over the same timeframe. That is, India is not only growing, but growing faster than most of its regional counterparts, making it one of the most attractive wealth markets in the region.
Top 5 Indicators Driving the Growth
1. Bank Account Penetration
To realize meaningful growth in the number of savings and investment products, India has to achieve close to 80% bank account penetration, a step that has already taken the country towards formalizing the financial system for hundreds of millions of previously unbanked people.
2. UPI Transaction Volumes
Now, Unified Payments Interface (UPI) is processing an estimated ₹235.58 lakh crore (about $2.5 trillion) and This transaction value per year highlights the extent to which digital payment rails now are prevalent in financial transactions and, consequently, ease the ability to funnel savings into formal investment products.
3. Demat Account Growth
In India, the number of demat accounts has crossed 192 million, driven primarily by the discount brokerages which have made trading in the stock market more affordable and accessible for retail investors, especially the younger and first time investors.
4. Systematic Investment Plan (SIP) Inflows
Monthly SIP inflows into mutual funds now stand at roughly ₹28,269 crore (about US$3 billion), which translates to nearly ₹3.39 lakh crore in annual equity-linked investment through this route alone, a sign that disciplined, retail-driven investing has become mainstream.
5. Institutional Capital Pools
Thus, the sector continues to be dominated by large institutional pools, with the Employees’ Provident Fund Organisation (EPFO) holding assets worth around ₹ 26.38 lakh crore (US$280 billion) and insurance funds collectively holding assets of around ₹61.25 lakh crore (US$650 billion). Capital from these pools is combined to create a steady, long-term source of funds that can be used for retail inflows.
What’s Fueling This Structural Shift
In addition to these five indicators, a combination of other factors are driving India’s AWM growth narrative:
- Regulatory reforms that have improved transparency, investor protection, and ease of market participation
- Digital public infrastructure such as UPI and Aadhaar-linked KYC that have significantly reduced the cost of new investors
- Growth of retail market involvement, particularly from smaller cities, as knowledge and understanding of market-linked investments continues to increase outside of traditional centres
- The rise of GIFT City as a financial services hub on the international front, which is assisting India in attracting wealth management capital flows, and making it a competing destination for offshore centers
What This Means Going Forward
This growth is a reflection of a maturing sector that has more choice of product, improved infrastructure and the growing institutional confidence that benefits investors. It’s a sizable opportunity that’s yet to be tapped out, as for wealth managers and fintech players, the ratio of AWM-to-GDP in India is much lower than developed markets, meaning there’s still plenty of room for them to grow. For the Indian economy as a whole, the AWM industry will be a near $1.7 trillion business by 2030, further cementing India’s aspirations to be a key global financial hub rather than just a fast-growing consumer market.
Conclusion
By 2030, the Indian AWM sector will grow by almost double, due to strong digital infrastructure, increasing retail participation and increasing institutional capital. All these factors are continuing to grow and India is fast becoming one of the most dynamic and closely watched markets for wealth creation in Asia.
