• In 2021, India’s gross savings was at 29.3% of GDP amoun ng to US$ 930.56 billion.

▪ The
contribu on by small savings schemes such as Senior Ci zen Savings Scheme (SCSS), 15-Year Public
Provident Fund (PPF), Na onal Savings Cer ficate and Sukanya Samriddhi is major in gross na onal
saving income. Visakhapatnam port traffic (million tonnes) Gross na onal savings as % of GDP
Source: World Bank, Reserve Bank of India Note: F - Forecast, Deloi e Center for Financial Services
35.1 35.3 34.3 33.5 32.5 30.8 31.7 31.3 29.9 30.7 29.3 0 5 10 15 20 25 30 35 40 2011 2012 2013 2014
2015 2016 2017 2018 2019 2020 2021 23 Con nued growth in equi es and innova ve products
Turnover for deriva ves segment (US$ trillion) Source: Na onal Stock Exchange, Venture Intelligence
Karvy India Wealth Report 2017, Private Equity Deal Tracker report by EY 9.90 14.07 25.60 33.99
49.00 74.34 216.20 0.00 50.00 100.00 150.00 200.00 250.00 FY16 FY17 FY18 FY19 FY20 FY21 FY22 ▪
The Indian equity market is expanding in terms of listed companies and market capitaliza on,
widening the playing field for brokerage firms. Sophis cated products segment is growing rapidly,
reflected in the steep rise in growth of deriva ves trading. ▪ With the increasing retail penetra on,
there is an immense poten al to tap the untapped market. Growing financial awareness is expected
to increase the frac on of popula on par cipa ng in this market. ▪ Total wealth held by individuals in
unlisted equi es is projected to grow at a CAGR of 19.54% to reach Rs. 17.64 lakh crore (US$ 273.69
billion) by FY22. ▪ India’s PE/VC investment were at US$ 77 billion in 2021, which was 62% higher
than 2020. ▪ Turnover from the deriva ves segment reached US$ 74.34 trillion in FY21 and stood at
US$ 216.20 billion in FY22. ▪ In July 2021, India's largest commodi es deriva ves exchange, Mul
Commodity Exchange of India Ltd., and European Energy Exchange AG (EEX) signed a memorandum
of understanding (MOU) with the goal of knowledge sharing and exper se exchange on electricity
deriva ve products. – This MoU will make it easier for the two exchanges to collaborate in areas
including knowledge sharing, educa on and training, and event planning in the field of electricity
deriva ves. 24 Rising scope for wealth management Source: News Ar cles, Knight Frank Report ▪
India is one of the fastest growing wealth management markets in the world. ▪ The number of Ultra
High Net Worth Individuals (UHNWI) is es mated to increase from 6,884 in 2021 to 11,198 in 2025. ▪
India’s UHNWIs is likely to expand by 63% in the next five years. ▪ The regulatory environment for
fiduciary du es in wealth management is evolving. Players will benefit greatly from quickly adop ng
new investor protec on measures. Investor protec on ▪ Brand building coupled with partnership
based model will improve the advisory penetra on. Greater focus on transparency will speed up the
process. Brand building ▪ Investment in required technologies, imbibing state-of-the-art best
prac ces of advisory and crea ng customised and innova ve products will enable growth. Innova on
25 Insurance to benefit from widening reach across segments 4. HEALTH • Only 1% popula on
covered currently, sugges ng that the vast market is yet to be tapped. Health insurance accounts for
1.2% of the total healthcare spend. 1. MICRO INSURANCE • It is targeted at rural segment,
addressing about two-thirds of Indian popula on. • The policy incen ves acts as drivers for the
growth of micro  insurance sector. 3. AGRICULTURE • Demand for agricultural and livestock insurance
growing on the back of rising awareness among rural popula on. 2. AUTO/ ENGINEERING ▪ Domes c
sales of passenger vehicles, three-wheelers and two-wheelers, reached 3,069,499, 260,995 and
13,466,412 units respec vely, in FY22. ▪ Increasing number of insurance registered for passenger cars
and for construc on ac vi es will rise with India’s infrastructure growth plans. 1 2 3 4 Source: News
Ar cles 26 Huge untapped poten al at the ‘bo om of the pyramid Note: MFI - Micro Finance
Ins tu ons; NGO - Non Governmental Organisa on; SHG - Self Help Groups ▪ Two-thirds of India’s
popula on lives in rural areas where financial services have made few inroads so far. Rural India,
however, has seen steady rise in incomes crea ng an increasingly significant market for financial
services. ▪ There are several standalone networks of SHG, NGO’s and MFI’s in different parts of rural
India. Cross-u lisa on of these channels can facilitate faster penetra on of a wider suite of financial
services in rural India. ▪ Increasing use of technology to reach rural India is the paradigm-shi ing
enabler. Internet kiosk-based channels are expected to become the bridge that connects rural India
to financial services. ▪ Rural credit segment is a large market, which can be tapped by ensuring mely
loans that are cri cal for the agricultural sector. ▪ Self Help Groups and NGOs are useful vehicles to
make inroads into rural India. Credit ▪ Safe investment op ons have a poten al to tap into rural
household savings. ▪ Some private players are producing innova ve products like third party money
market mutual funds to cater to rural investment needs. Investment ▪ Agricultural, livestock and
weather insurance are poten ally large markets in rural India. ▪ Harnessing exis ng networks of MFIs
and NGOs can speed up the process. Insurance 27 Favourable policy measures and government
ini a ves… (1/2) 1 Source: Union Budget 2021-22, Company websites, Media sources 2 3 FDI
requirement for fund based and non fund based financial en es ▪ In April 2018, the Government
issued minimum FDI capital requirement of US$ 20 million for unregistered /exempt financial en es
engaged in ‘fund-based ac vi es’ and threshold of US$ 2 million for unregistered financial en es
engaged in ‘non-fund based ac vi es. ▪ The government has approved 100% FDI for insurance
intermediaries and increased FDI limit in the insurance sector to 74% from 49% under the Union
Budget 2021-22. Budgetary measures ▪ Under the Union Budget 2022-23, the government allocated
Rs. 1,538,779.45 crore (US$ 204.36 billion) to the Ministry of Finance. ▪ Under the Union Budget
2021-22, the government allocated Rs. 1,386,273.30 crore (US$ 191.54 billion) to the Ministry of
Finance. ▪ An Asset Reconstruc on Company Limited and Asset Management Company will be
formed to consolidate and take over exis ng stressed debt and manage and dispose assets. ▪ An
ins tu onal framework will be created for the corporate bond market to inculcate confidence among
par cipants and augment liquidity of secondary markets. ▪ To promote the Interna onal Financial
Services Centre (IFSC) in GIFT City (Gujarat Interna onal Finance Tech City), the budget proposed
more tax incen ves. Interna onal Financial Services Centres Authority (Banking) Regula ons, 2020 ▪
In November 2020, the IFSC Authority has approved the Interna onal Financial Services Centres
Authority (Banking) Regula ons, 2020. ▪ Key highlights of the regula on include the following: –
Outlining the criteria for establishment of the IFSC Banking Units (IBUs). – Permission to open foreign
currency accounts in any freely conver ble currency at IFSC Banking Units for people residing outside
India (IBUs). – Allowing individuals residing in India to open foreign currency accounts at IFSC
Banking Units (IBUs) in any freely conver ble currency to pursue any permissible current account. ▪
On September 30, 2021, the IFSC Authority cons tuted an expert commi ee to recommend
approach towards development of sustainable finance hub and provide road map for the same. 28
Favourable policy measures and government ini a ves… (2/2) 4 Tax incen ves ▪ Insurance products
are covered under the EEE (exempt, exempt, exempt) method of taxa on. This translates to an
effec ve tax benefit of approximately 30% on select investments (including life insurance premiums)
every financial year. ▪ Reduc on in securi es transac on tax from 0.125% to 0.1% on cash delivery
transac ons and from 0.017% to 0.1% on equity futures. ▪ Indian tax authori es plan to sign bilateral
advance pricing agreement with a number of companies in Japan. The agreement is aimed at
avoiding conflicts with mul na onal companies over sharing of taxes between India and the
countries where these firms are based. Source: Company websites, Media sources 5 Other ini a ves
▪ In August 2020, the IRDAI modified its dividend criteria for investment—in which insurers are now
permi ed to classify investments in preference and equity shares as part of "approved investments“,
if such shares have paid dividend for at least two out of three consecu ve years immediately
preceding. This relaxa on is valid from April 1, 2020 to March 31, 2021. ▪ In May 2021, the Union
Cabinet, chaired by Prime Minister Narendra Modi approved signing of a Memorandum of
Understanding (MoU) between the Ins tute of Chartered Accountants of India (ICAI) and Qatar
Financial Centre Authority (QFCA). The MoU would enhance coopera on between the ins tutes to
work together to strengthen the accoun ng profession and entrepreneurship base in Qatar. ▪ In July
2021, Rajya Sabha approved the Factoring Regula on (Amendment) Bill in 2020, enabling ~9,000
NBFCs to par cipate in the factoring market. The bill also gives the central bank the authority to
establish guidelines for improved oversight of the US$ 6 billion factoring sector. ▪ In August 2021,
Prime Minister Mr. Narendra Modi launched e-RUPI, a person and purpose-specific digital payment
solu on. – e-RUPI is a QR code or SMS string-based e-voucher that is sent to the beneficiary’s cell
phone. Users of this one- me payment mechanism will be able to redeem the voucher at the service
provider without the usage of a card, digital payments app, or internet banking access. ▪ In
September 2021, Bank of India announced it has entered a co-lending arrangement for micro, small
and medium enterprise (MSME) loans with an Ahmedabad-based non-bank financier MAS Financial
Services Ltd. 29 Key Industry Contacts 30 Key Industry Contacts Agency Contact Informa on
Insurance Brokers Associa on of India (IBAI) Mak