India has been fast becoming a Global destination for Funds and Business expansion due to the inherent advantages of being a High Return Economy driven by Domestic Consumption along with Investment driven Structural changes initiated by the present Government of India.
On one hand, this has led to massive Inflow of Funds into Financial Instruments of India such as Bonds, Equities & Mutual Funds and on the other, it has also led to increasing FDI participation into various Business Sectors of India. Indian Government has been aggressively working in getting our Sovereign Bonds listed over World Govt Bond Index (WGBI) which would lead to massive Passive Inflow of Funds into our Financial Markets. Additionally, with the initiatives of FDI in most sectors opening up including 74% in Insurance, Proposed LIC IPO, Disinvestments in various PSUs, Consolidation in Banks/Financial Institutions, the Govt has time & again hinted that they shall be primarily focusing on regulating the Businesses through Structural reforms rather than owning the Businesses. While these quick policy changes would bring great & everlasting changes in Financial Planning & Portfolio Management Industry, this would also bring a lot of focus upon nurturing Startups & MSMEs through apt Business Strategies.
Also with the Bank deposit rates falling, thanks to excess liquidity with banks, a lot many Risk-averse Investors are getting attracted to Risky Assets off late. Even the Govt’s focus seems to be clear with the introduction of NPS & lowering down of Interest rates on conventional savings schemes, that they also want people in India to either Invest in Market-related Instruments for increasing valuations that could attract more foreign participation OR they should feel motivated to spend on increasing consumption activities so that it could lead to GDP growth.
Hence the Industry seems to be standing at an Inflection Point and a new Trajectory is shaping up from here in the twin domains of Financial Advisory (Related to Financial Planning) & Business Advisory (Related to Financial Services).