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India to contribute 13 percent of the Asia Pacific financial services industry growth as regional economic value heads towards US$4.8 trillion by 2035: Deloitte report
- India’s economy is projected to expand 64 percent to US$6.2 trillion by 2030, strengthening the financial services growth opportunity in the country
- India is expected to add 128 million middle-income households by 2034, expanding the opportunity across banking, insurance, pensions and wealth
- Deeper capital markets, meaningful financial participation, AI-led transformation and regulatory engagement emerge as key priorities shaping the next growth phase
National, 01 September 2026: Asia Pacific is entering a defining decade for financial services, supported by faster economic growth, rising incomes, growing wealth and increasing investment requirements. India is expected to play a significant role in this growth, accounting for 13 percent of the region’s financial services industry growth, with its economy projected to grow from ~US$4.15 trillion in 2026 to US$6.2 trillion by 2030. Building on Deloitte India’s recently launched State of Financial Services in India (SOFSI) report, which outlined a blueprint of strategic imperatives for India’s financial services sector across policy, market-wide systems and individual institutions, Deloitte’s new report, From growth to advantage: Competing for the future of financial services in Asia Pacific, examines the structural shifts reshaping the region and identifies four competitive battlegrounds that will likely define the next decade.
“Over the next decade, many of the most important decisions on capital, payments, digital assets, AI and financial infrastructure will be made in the Asia
Pacific. The region has the scale, savings, innovation and talent to shape the
next era of global finance. But the prize is not assured. Leadership will
depend on whether institutions can connect funding with opportunity, win more demanding customers and use AI to build a sustainable advantage. The response to uncertainty should not be caution. The winners will be those that set a clear direction and execute at pace. Institutions that connect regional savings with investment needs, deepen customer relevance, build distinct AI-enabled capabilities and engage constructively with regulators will be best placed to define the next era of financial services in Asia Pacific."
- Stuart Johnston, Deloitte Asia Pacific’s Financial Services Leader.
"India is entering this phase with strong foundations in financial access, digital payments and digital public infrastructure. However, meaningful gaps remain across formal credit, MSME financing and insurance, while changing household savings patterns and rising financing requirements are increasing the need for a deeper and more diversified financial system. These priorities, highlighted in the recently launched SOFSI report, reinforce the need to move from expanding access to deepening financial participation and strengthening the channels through which capital supports growth."
“India’s financial services sector has built considerable scale, but the next phase will be about translating that scale into greater depth. As credit demand grows,
deeper debt markets and more efficient capital allocation will become
increasingly important. At the same time, the gaps in formal MSME credit and
insurance underline the opportunity to move from financial access to meaningful participation. India has strong foundations in digital public infrastructure; the priority now is to build on them to deepen credit, protection and investment participation, while using technology and AI to improve productivity and customer outcomes."
- Vijay Mani, Partner and Banking and Capital Markets Leader, Deloitte India.
Shaping the new financial system will require financing capacity to evolve alongside India’s growth requirements. This includes deeper, more efficient debt markets, broader participation, better price discovery, risk-based pricing, stronger deposit mobilisation and greater access to foreign capital. Newer mechanisms, such as asset tokenisation, can also broaden capital and liquidity options, particularly for MSMEs, while more efficient market structures can help diversify financing beyond traditional balance-sheet lending.
Winning the customer will increasingly require moving from access to deeper financial participation. India’s expanding middle class and digital foundations create opportunities across credit, insurance, savings and wealth, but capturing them will require a stronger lending infrastructure, broader MSME credit access, greater protection coverage, and more relevant product and distribution models. The opportunity also extends to broadening the investor base and serving changing investment preferences as household financial needs evolve.
Navigating the AI inflection will require financial institutions to move beyond incremental productivity gains and embed AI more deeply into their business and operating models. Strong data foundations, process reengineering, agentic AI, governance and new workforce capabilities will be important for converting rising technology spending into measurable outcomes. India’s financial services GCCs can further strengthen this transition as they move towards end-to-end ownership, embedded global roles and AI-native ways of working.
Engaging the rule-makers will become increasingly important as market structures, technology and customer models continue to evolve. Deeper debt markets, risk-based frameworks, foreign investment, tokenisation, financial inclusion and stronger fraud prevention and resilience will require continued coordination among institutions, regulators and policymakers. This will be important in ensuring that policy, market infrastructure and institutional transformation evolve together as India’s financial services sector supports the country’s next phase of growth.
“Regulation is no longer just a cost of doing business – it is a source of trust, influence and competitive advantage. The firms that engage early with policymakers and bring practical solutions will shape the rules they operate under. Hong Kong and Singapore are strengthening as global financial centres, and institutions that treat them as staging grounds for regional influence will win,” said David Wai Kit Wu, Deloitte Hong Kong’s Financial Services Leader.
To access the full report and learn more about the findings, please visit https://www.deloitte.com/ap/en/perspectives/asia-pacific-financial-services-growth-to-advantage.html
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