Indian Financial Industry

Hello Folks,

I hope you are having a good week.

As part of this post, I’ll be covering the financial industry in general. Last year, FY13, India had the savings rate of 30.1 % of GDP. If we do a comparison with 2008 and on-wards, below are the results:

Financial Year	Gross Domestic Savings Rate ( Overall as % of GDP )
FY 08	32 %
FY 09	33.7 %
FY 10	33.7 %
FY 11	31.3 %
FY 12	30.1 %

 

So as you can see the savings rate has been falling for some years and it is expected to fall as the young population of India starts consuming services and saves less each month.

But, we as young Indians get good financial advice from our elders, parents, grand-parents, friends and extended family, about how to save for the rainy days and this advice tends to be true most of the time.

To get the point in this post, if you are earning by the way of a job or a business, Indian financial industry provides you the following financial services:

1. Personal Financial services like Savings Account, Fixed Deposits, National Savings Funds (NSF), Post Office Saving Schemes etc.
2. Insurance Services like Life Insurance Products, Health Insurance Products, Home Insurance Products, Non-Life Insurance products for businesses, Auto Insurance etc.
3. Pensions Services like the New Pension Scheme, Personal Pension products from Private companies etc.
4. Wealth Management services which includes managing personal wealth, wealth growth through investments in products like Equity Markets, Debit Markets, Real Estate & Other avenues.

The above listed points caters to almost majority of the Indian financial industry and as part of this blog series, I’ll be covering each of the sections with individual posts so that you as a reader can have a better understanding of the financial services and options available to you for growing your wealth.

Regards,

DD