The Ministry of Finance handles all financial matters of the country. India’s inherent strengths include an extensive commercial banking system, an independent regulatory authority, active stock market, established term lending institutions, investment funds, equipment leasing companies, venture capital funds etc.
Worldwide Stock Markets
Source: World Federation of Exchanges, 2014 year-end
| Country | Market cap (US$ trillion) |
| USA Japan China Hong Kong UK Canada France Germany India Switzerland Australia |
23.8 4.5 4.2 3.8 3.7 2.1 2 1.8 1.6 1.5 1 |
Note:
The capital markets in India are regulated by the Securities and Exchange Board of India (SEBI). India has over 20 million shareholders, over 9,000 companies listed on the stock exchanges, serviced by approximately 7,500 stockbrokers. Bombay Stock Exchange (BSE), the oldest stock market of Asia. BSE is the tenth largest stock market in the world and NSE is the world’s eleventh largest in terms of market capitalization (Source: World Stock Exchanges, Dec 2014). There is a large presence of FIIs in the Indian capital market with over 451 FIIs and 38 foreign brokers registered with SEBI.
Assets under management (AUM) by the Indian Mutual Fund industry
Source: moneycontrol.com
| March 2015 | Rs 11,87,477 crores |
| February 2010 | Rs 7,81,711 crore |
| May 2008 | Rs 6,00,000 crore |
| End-March 2000 | Rs 1,13,005 crore |
Note: In India, there are 41 registered Mutual Fund houses, including investments in income funds, equity or growth funds, balanced funds, gilt funds, ELSS and Liquid funds/ money market funds.
Individual Wealth in India
The total individual wealth in India, held by individuals is as given below (2009-10), as per World Wealth Report.
| Asset-wise break-up of individuals | Amount (Rs cr) |
| Direct equity Fixed deposit and bonds Life Insurance Savings bank deposits Small savings (PO/ KVP/ NSC/ etc.) Provident fund Mutual Fund Employee’s Pension fund Others (Debentures/ PE/ VC/ etc.) |
22,73,043 22,16,307 9,47,903 675,134 519,162 281,559 277,953 98,242 18,575 |
| Total | 73,07,878 |
If we include physical GOLD and real estate, the individual wealth increases to Rs 95 lakh crores (US$ 2.12 trillion). Privately held gold in India is worth Rs 9.2 trillion (4 times the amount held in Fort Knox and about 1/5th of all gold ever mined in the world (source: World Gold Council). The individual HNI wealth across the globe is estimated at US$ 48.5 trillion, 2013.
Tax payers in India
Source: Central Board of Direct Taxes
| Individual tax payers | HUF tax payers | |
| 2013-14 2009-10 2008-09 1997-98 |
35 million 31.3 million 30.1 million 10 million |
~8 lakhs 8,06,236 7,68,845 – |
Number of middle class households in India are 26 million in 2009-10 (annual incomes of US$ 5,000-12,000).
India’s annual savings of about Rs 22,12,414 crores (2012-13) is amongst the highest in the world, including Rs 10.97 lakh crores of household savings. Our Savings to GDP ratio is around 31% (2012-13) compared to 33% in 2005; 23.7% in 2000 and 24% in 1995.
Indian credit-card market
Source: Reserve Bank of India
| Year | Credit cards (crores) | Debit cards (crores) |
| Dec 2014 | 2.04 | 50.01 |
| 2009-10 | 1.83 | 18.14 |
| 2007-08 | 2.75 | 10.24 |
| 2006-07 | 2.62 | – |
| 2005-06 | 1.73 | 4.98 |
| 2004 | 1.2 | – |
Medical insurance statistics
Source: Insurance Information Bureau, India
| Yr-end | Policy holders (cr) |
Premiums (Rs cr) |
Claims made (lakhs) |
Claims paid (Rs cr) |
| 2004* 2005* 2006* 2007* 2008* 2009* 2010 2011 2012 2013 |
0.84 0.90 1.64 1.79 2.41 3.27 5.49 5.25 2.91 3.48 |
944 987 1,947 2,820 2,758 3,976 7,803 10,932 10.942 12,941 |
3.6 5.55 10.17 10.06 14.37 20.81 32.64 38.44 25.91 35.18 |
785 948 1,777 2,198 2,904 4,087 7,456 10,797 8,499 8,783 |
Note – * Policies serviced by TPAs only
- World’s largest marketing workforce is LIC agent base of 1 million agents
- India’s share in of world life insurance business grew to 1.97% in 2007 with an annual premia generated worth $47.1 billion. China accounts for 2.45% world share with an annual premia of $58.6 billion.
Inflation
Source: Labour Bureau of India, 2015
| Food Inflation 5 year moving avg (Approx % pa) |
Wholesale Price Index (new base 2005) | Consumer Price Index (new base 2010) | |
| Dec 1997 Dec 1998 Dec 1999 Dec 2000 Dec 2001 Dec 2002 Dec 2003 Dec 2004 Dec 2005 Dec 2006 Dec 2007 Dec 2008 Dec 2009 Feb 2010 2010-11 2011-12 2012-13 2013-14 |
9.7% 11% 8% 6% 4.8% 3% 0.7% 2.1% 3.8% 4.4% 5.9% 7.8% 10% 10.5% 17% – – – |
– – – 155.7 – – – – – – – 117 126 133 149 159.8 167.6 177.6 |
– – – 444 – – – – – – – 133 145 163 180 111.9 123.3 135 |
Note: The WPI has three parts — primary articles (weightage of 32.29 per cent), fuel group (weightage of 10.66 per cent) and manufactured articles (weightage of 57.04 per cent). Primary articles are meaning unprocessed food crops and fibres plus livestock. The fuel group comprises mineral oils, electricity and coal. The largest contributor to the low inflation rate, as measured by the WPI, has been the ‘manufactured products’ group.
The Reserve Bank of India (RBI) – India’s central banking institution supervises all banking operations in the country. Among the public sector banks, the State Bank of India is the largest. World’s first floating ATM is located on a barge on backwaters of Kerala.
Outstanding homeowners mortgages in India has increased from Rs. 18,600 Cr. in 1998 to Rs. 81,000 Cr. in 2003-04 to Rs. 396,000 Cr. in 2009-10. Household debt as a % of gross domestic product for South Korea and Taiwan, exceeds 60% of their GDP, and Malaysia and Thailand, with 25% each.
Non-performing Assets (NPA) of nationalized banks, 2014
Source: Economic Survey of India
| Bank statistics (India) | 1998 | 2002 | 2006 | 2014 |
| Total NPA of nationalized PSU banks (Rs Cr) | 45,653 | 54,458 | 41,378 | 2,64,200* |
Note:
- 2014 NPA figures are for all banks combined
- Private sector banking NPA for 2010-11 was Rs 18,240 cr (Rs 17,639 for 2009-10) and for foreign banks in India it was Rs 5,068 cr (Rs 7,133 for 2009-10).
Return on Assets of banks, March 2011
Source: International Monetary Fund
| Country | 2007 | 2008 | 2009 | 2010 |
| Brazil Russia India China USA France Japan Germany UK |
3.4 3.0 0.9 0.9 1.2 0.4 0.3 0.3 0.4 |
1.5 1.8 1.1 1.0 -0.1 0.0 -0.3 -0.1 -0.4 |
2.4 0.7 1.0 0.9 -0.1 0.4 0.2 0.2 0.1 |
3.2 1.9 1.0 1.0 0.9 0.6 0.4 – 0.2 |
Historical Banking Statistics, 2011
Source: Economic Survey of India
| Bank statistics (India) | 1969 | 1995 | 2011 |
| Number of banks Number of bank branches Population per branch Credit/ Deposit Ratio (%) Cash/ Deposit Ratio (%) |
89 8,262 62,697 78 8 |
282 62,264 14,000 59 4 |
283 74,130 13,466 76.5 – |
As of 2011, there were close to 300 foreign, public-sector, and regional banks – up from about 60 in 1997, and 1,645 urban co-operative banks and 1,150 rural co-operative banks in India. 288 branches of Indian commercial banks are spread over a number of countries and located in major centers like London, New York, Paris, Tokyo, Singapore and Bahrain. These branches specialize in various areas of international trade including financing of foreign trade.