Financial Services- highly under-penetrated in India

Financial services are the economic services provided by the finance industry, which encompasses a broad range of businesses that manage money, including credit unionsbankscredit-card companies, insurance companies, accountancy companies, consumer-finance companies, stock brokeragesinvestment funds and some government-sponsored enterprises.

In India, the financial services market is highly underpenetrated compared to most developed countries across the globe. This highlights the potential for the growth of this sector in India in the coming years. The data below will help understand how underpenetrated the market us and how much scope for growth could unleash.

2015 Data

  Credit as a % of GDP
India 76%
Japan 353%
US 237%
UK 163%
World 175%


Housing Loans as a % of Loan portfolio
India 3%
US 37%
UK 34%


Rising share of housing loans as % of GDP at market prices
FY 96-97 1.70%
FY 05-06 7.30%
FY 14-15 8.50%


Mutual Fund Market
AUM to GDP Ratio
India 10%
US 104%
UK 54%
Japan 36%
World 55%


Net Equity Inflows in India
in Rs bn
FY13 -144
FY14 -113
FY15 809
FY16 938
FY17 1070


Indian Life Insurance Industry
Life Insurance premium density per capita (USD) [2015]
India 43
UK 3431
US 2569
Singapore 3363
Japan 2362


% of medical expenditure funded through Insurance
India 5%
USA 64%
UK 31%
South Africa 83%


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