New Delhi, June 25 (IANS): India’s asset and wealth management (AWM) industry is projected to grow to $1.7 trillion in assets under management (AuM) by 2030 from $0.9 trillion in 2024, registering a compound annual growth rate (CAGR) of 11.6 per cent, according to a PwC report. The report said the expansion will be driven by the parallel growth of institutional capital pools and increasing retail financialisation. It noted that India’s growth trajectory outpaces the broader Asia-Pacific region, where AuM is expected to rise from $23.2 trillion in 2024 to $34.5 trillion by 2030 at a CAGR of 6.8 per cent. However, the report emphasised that translating this opportunity into sustainable and profitable growth will require operating models tailored specifically to the Indian market. It also highlighted the role of public digital infrastructure, regulatory reforms and the emergence of GIFT City in strengthening India’s capital base. According to PwC India Chief Commercial Officer and Financial Services Leader Vivek Prasad, India’s path to $1.7 trillion in AWM assets reflects a deepening domestic capital base, broader participation in formal financial markets and the gradual shift of household savings towards long-term investments.
The report pointed to India’s strong digital and financial ecosystem as a key enabler of growth, noting that the country has 78-80 per cent banking penetration, 1.4 billion Aadhaar digital IDs and annual UPI transactions worth around $2.5 trillion. It added that the rise of discount brokers has contributed to the creation of 192 million demat accounts, while monthly SIP inflows exceeding $3 billion translate into nearly $36 billion in annual equity investments. More than 40 per cent of new SIPs now originate from Tier 2, Tier 3 and Tier 4 cities, indicating expanding investor participation beyond metropolitan centres, although average investment sizes and product sophistication in these regions remain relatively modest. On the institutional front, the Employees Provident Fund Organisation (EPFO), with assets of about $280 billion, the National Pension System (NPS), which is targeting $1 trillion by 2030, and insurance assets worth approximately $650 billion are gradually increasing allocations towards equities, alternative investments and global assets, further supporting the industry’s long-term growth.