India’s asset and wealth management (AWM) industry is poised for significant expansion, with assets under management (AuM) projected to nearly double to $1.7 trillion by 2030 from $900 billion in 2024, according to a new report, ‘The Indian asset and wealth management industry: An estimate', by PwC India. According to the report, Ahead of the Curve: Asset and Wealth Management Revolution Asia-Pacific, the Indian wealth management market will grow at 11.6% rate per year and will be one of the fastest growing markets in the Asia-Pacific region.
Key Highlights
- India's asset and wealth management industry is projected to nearly double by 2030.
- Strong retail participation and institutional capital formation are driving long-term industry expansion.
The report points to India's new “dual-engine” growth mode, as the rise of institutional capital formation alongside high retail investor participation has created a solid basis for growth in the long run.
India Outpaces Asia-Pacific Growth
The Asia-Pacific asset management industry is projected to grow from $23.2 trillion in 2024 to $34.5 trillion by 2030, with a compound annual growth rate of 6.8%. India, on the other hand, will be growing at a much higher rate.
The growth is due to a structural transformation in India's financial ecosystem, as more households are accessing formal investment channels, regulators have taken steps to encourage it and there is a growing digital capability.
“India’s journey towards $1.7 trillion in AWM assets reflects a deepening domestic capital base and a steady migration of household savings into long-term investment products,” said Vivek Prasad, Chief Commercial Officer and Financial Services Leader at PwC India.
Digital Adoption Fuels Retail Participation
The report attributes much of the retail investment boom to India’s rapidly expanding digital ecosystem.
India now has:
- Banking penetration of nearly 80%
- More than 1.4 billion Aadhaar digital IDs
- Annual UPI transaction volumes worth approximately $2.5 trillion
- Over 192 million demat accounts
Institutional Capital Pools Continue to Expand
On the institutional side, India’s long-term savings ecosystem is also deepening.
The report notes that:
- The Employees' Provident Fund Organisation (EPFO) manages approximately $280 billion in assets.
- The Pension Fund Regulatory and Development Authority (PFRDA) is targeting $1 trillion in National Pension System assets by 2030.
- Insurance assets have reached around $650 billion.
Reforms encouraging greater allocations to equities, alternative assets and global investments are expected to further strengthen institutional participation.
Alternative Investments and REITs Gain Momentum
Alternative Investment Funds (AIFs) have emerged as a major growth segment, with commitments surpassing $160 billion and growing at over 25% CAGR.
Category II private credit funds are witnessing particularly strong traction as businesses increasingly seek alternatives to traditional bank financing.
Meanwhile, listed REITs and InvITs have crossed $25 billion in market capitalisation, offering investors greater access to real estate and infrastructure assets through regulated investment vehicles.
Wealth Creation and GIFT City to Drive Next Growth Phase
PwC expects India’s high-net-worth (HNW) population to grow faster than any major Asia-Pacific market over the next decade, supported by an estimated $1.5 trillion intergenerational wealth transfer.
The report also identifies GIFT City as a critical growth catalyst. More than 100 fund management entities have already established operations in the international financial services hub, with committed AuM growing at triple-digit rates from a low base.
Also Read: GIFT City Emerges as Top Investment Hub for NRIs: 5 Key Growth Factors
PwC believes GIFT City can help India become a significant draw for global funds and a source of outbound investments. But, continued product innovation and development of operational infrastructure, plus regulatory clarity, will be required for sustained growth.
India's asset management industry looks primed for its next growth spurt, as digitalization is gaining momentum, institutional capital expands and investors extend their geographical footprints.
