The Indian financial sector is in a process of rapid transformation. The sector has grown at around 15 per cent and has displayed stability for the last several years, even when other markets in the Asian region were facing a crisis. Details on Indian financial sector are available at http://www.rbi.org.in/

Banking - The Reserve Bank of India (RBI), the central bank of India, has ushered in a regime where interest rates are more in line with market forces. This has increased the credit disbursements in the economy which, in turn, boosted industry. The potential of the sector is evident from existing size of the sector. Presently the total asset size of the Indian banking sector is US$ 270 billion while the total deposits amount to US$ 220 billion in a banking network of over 66,000 branches across the country.

Capital Market - The Indian capital markets have witnessed a transformation over the last decade. India is now placed among the mature markets of the world. Key progressive initiatives in recent years include: Corporatisation of stock exchanges. Indian capital markets have rewarded Foreign Institutional Investors (FIIs) with attractive valuations and increasing returns.

Stock Exchanges - The Mumbai Stock Exchange continues to be the premier exchange in the country with an increase in market capitalisation from US$ 40 billion in 1990-1991 to US$ 203 billion in 1999-2000. The stock exchange has about 6,000 listed companies and an average daily volume of about a billion dollars

Insurance - With the opening of the market, foreign and private Indian players are keen to convert untapped market potential into opportunities by providing tailor-made products. The size of the market presents immense opportunities to new players with only 20 per cent of the country’s insurable population currently insured. The market’s potential has been estimated to have a premium income of US$ 80 billion with a potential size of over 300 million people.

Venture Capital - Given the inherent strength by way of its human capital, technical skills, cost competitive workforce, research and entrepreneurship, India is positioned for rapid economic growth in a sustainable manner. According to a survey conducted by Thomson Financial and Prime Database, India ranked as the fourth most active venture capital market in Asia Pacific (excluding Japan). Disbursements are expected to increase from US$ 2 billion in 2002 to US$ 10 billion by 2007. There is an increased interest in India: 70 VC funds operate in India with the total assets under management worth about US$ 6 billion. For details of the Indian financial sector please look at http://finmin.nic.ins