Financial education industry is booming in India, and the country is expected to overtake China as the world’s fastest growing finance and technology hub by 2021.
The sector is expected by some analysts to grow at an annualised rate of nearly 7 percent, and is expected, according to a report by The National Centre for Financial Education, to add nearly 3 million graduates over the next five years.
According to the report, India is set to become the second-fastest-growing economy in the world with a forecast to double its gross domestic product by 2035, and will become the third-largest financial industry by 2025, when it accounts for approximately 40 percent of global finance and IT revenues.
The country is also expected to become one of the worlds largest financial services hubs by 2022, with a projected growth rate of 7 percent.
Financial education industry has also been attracting top talent and international capital, according a report published by the National Centre.
In India, the report said, companies such as Infosys and Tiger Global Management have been making inroads into the industry.
In terms of talent, India has one of most well-qualified graduates of any of the major Indian financial institutions, with the government’s Financial Education National Council (FENC) reporting that its graduates accounted for about half of the countrys financial education workforce, according the report.
The number of graduates enrolled in financial education programs rose from 6.5 million in 2013 to 11.5 billion in 2021.
The number of Indian graduates in the banking industry grew from around 3 million to nearly 7 million between 2014 and 2021, according research by McKinsey and Co. The growth rate is expected increase to 9 percent by 2020, and 9 percent in 2021, the company reported.
According to the FENC, the banking sector is set for a 10 percent growth in 2020 and a 10.5 percent increase in 2021 with a target of 30 million graduates by 2020.
According a McKinsey report, the financial education industry in India is expected grow at a compounded annual growth rate (CAGR) of 8.5 per cent, with its GDP expected to grow by 9.3 percent by 2021, from a total of $9 trillion to $9.5 trillion.
India’s Financial Industry National Council reported in March that financial education is a growing segment in the Indian economy and the fastest-growing one.
“India has emerged as the largest financial sector by revenue and revenue growth, and India is on track to overtake the US in 2025 as the leading financial services market,” said Arundhati Bhattacharya, CEO, The National Center for Financial Educational Education.
“As the country grows, so do the prospects for financial education.”