Analyzing the Indian Financial Services Industry
Financial services accounted for 9.7 percent of India's GDP in 2005-2006.
The Indian financial services industry is in a process of rapid transformation. Reforms are continuing as part of the overall structural reforms aimed at improving the productivity and efficiency of the economy. The role of an integrated financial infrastructure is to stimulate and sustain economic growth.
Overall, the US$28 billion Indian financial sector has grown at around 15 percent and has displayed stability for the last several years, even when other markets in the Asian region were facing a crisis, according to Ministry of External Affairs, Government of India. This stability was ensured through the resilience that has been built into the system over time. The financial sector has kept pace with the growing needs of corporate and other borrowers. Banks, capital market participants and insurers have developed a wide range of products and services to suit varied customer requirements. The Reserve Bank of India (RBI) has successfully introduced a regime where interest rates are more in line with market forces.
Financial institutions have combated the reduction in interest rates and pressure on their margins by constantly innovating and targeting attractive consumer segments. Banks and trade financiers have also played an important role in promoting foreign trade of the country.
Aruvian's R'search’s report Analyzing the Indian Financial Services Industry is a complete insight into this complex, competitive and fast paced industry which holds the potential and promise of one of the highest growing sectors in the Asian Sub Continent. The report explores the profile of the financial services industry in the world economy and builds the same basis the trade and investment flow patterns which give birth to the driving trends of the industry thereby governing increasing manpower and capital allocation to this sector.
The report analyzes the Indian Financial Sector in detail by breaking the industry into segments which are active in this realm and the competitive factors which are boosting the industry growth. This report also draws up a scenario of studying the conditions prevalent in the pre-reform era and compares it with the post reforms which have been undertaken in this sector which have galvanized growth in this important and ethically driven industry.
The report further details India’s trade in financial services industry and explores the export potential of these services in sectors as banking and insurance which are the global powerhouses and movers of investment to key areas. Some of the barriers to India achieving its full potential in these services are also explained in this report.
The impact of international treaties as the GATS and critical development areas such as outsourcing and offshoring with reference to India’s position in the global map is also explained in depth sections in this report.
Further, the report presents a unique analytical section on the Indian Financial Services Industry by applying the SWOT, PEST & Porter’s Five Forces Strategy Analysis to the industry in order to better explain its inner mechanisms at work which are the basis of this industry and lend a distinct character to it.
The report examines the core thrust of India’s negotiating tactics in the financial services industry. Aruvian’s research elaborates on certain approaches to making the Indian Financial Services Industry more competitive through the required regulatory reforms or looking at possible reduction of governmental interest in this sector.
The report also profiles the major contributors to the industry and their relative performances which lead up to the report’s section on the future outlook of the Indian Financial Services Industry.
The Indian financial services industry is in a process of rapid transformation. Reforms are continuing as part of the overall structural reforms aimed at improving the productivity and efficiency of the economy. The role of an integrated financial infrastructure is to stimulate and sustain economic growth.
Overall, the US$28 billion Indian financial sector has grown at around 15 percent and has displayed stability for the last several years, even when other markets in the Asian region were facing a crisis, according to Ministry of External Affairs, Government of India. This stability was ensured through the resilience that has been built into the system over time. The financial sector has kept pace with the growing needs of corporate and other borrowers. Banks, capital market participants and insurers have developed a wide range of products and services to suit varied customer requirements. The Reserve Bank of India (RBI) has successfully introduced a regime where interest rates are more in line with market forces.
Financial institutions have combated the reduction in interest rates and pressure on their margins by constantly innovating and targeting attractive consumer segments. Banks and trade financiers have also played an important role in promoting foreign trade of the country.
Aruvian's R'search’s report Analyzing the Indian Financial Services Industry is a complete insight into this complex, competitive and fast paced industry which holds the potential and promise of one of the highest growing sectors in the Asian Sub Continent. The report explores the profile of the financial services industry in the world economy and builds the same basis the trade and investment flow patterns which give birth to the driving trends of the industry thereby governing increasing manpower and capital allocation to this sector.
The report analyzes the Indian Financial Sector in detail by breaking the industry into segments which are active in this realm and the competitive factors which are boosting the industry growth. This report also draws up a scenario of studying the conditions prevalent in the pre-reform era and compares it with the post reforms which have been undertaken in this sector which have galvanized growth in this important and ethically driven industry.
The report further details India’s trade in financial services industry and explores the export potential of these services in sectors as banking and insurance which are the global powerhouses and movers of investment to key areas. Some of the barriers to India achieving its full potential in these services are also explained in this report.
The impact of international treaties as the GATS and critical development areas such as outsourcing and offshoring with reference to India’s position in the global map is also explained in depth sections in this report.
Further, the report presents a unique analytical section on the Indian Financial Services Industry by applying the SWOT, PEST & Porter’s Five Forces Strategy Analysis to the industry in order to better explain its inner mechanisms at work which are the basis of this industry and lend a distinct character to it.
The report examines the core thrust of India’s negotiating tactics in the financial services industry. Aruvian’s research elaborates on certain approaches to making the Indian Financial Services Industry more competitive through the required regulatory reforms or looking at possible reduction of governmental interest in this sector.
The report also profiles the major contributors to the industry and their relative performances which lead up to the report’s section on the future outlook of the Indian Financial Services Industry.
A. EXECUTIVE SUMMARY
B. PROFILE OF FINANCIAL SERVICES IN THE WORLD ECONOMY
B.1 Trade & Investment Flows
B.2 Emerging Patterns in Global Financial Services Sector
B.3 Forces Driving Trends in the Sector
B.4 Costs & Benefits of Opening up the Financial Services Sector
B.5 Regulatory Issues and Developments
C. INTRODUCTION TO THE INDIAN FINANCIAL SERVICES SECTOR
C.1 Structure of the Sector
C.2 Market Profile
C.3 Industry Segmentation
C.3.1 Banking
C.3.2 Insurance
C.3.3 Mutual Funds
C.3.4 Stock Markets
C.4 Competitive Factors Boosting Industry Growth
C.5 Analyzing Market Patterns
C.6 Competition in the Industry
D. REFORMS IN THE INDIAN FINANCIAL SERVICES SECTOR
D.1 The Pre-Reform Scenario
D.1.1 The Banking System
D.1.2 Long-term Finance & Investment Institutions
D.1.3 Other Institutions & Financial Markets
D.2 Post-Reform & Current Scenario
D.2.1 The Banking System
D.2.2 Non-bank Financial Services
D.2.3 Insurance
D 2.4 Capital Markets
E. INDIA’S TRADE IN FINANCIAL SERVICES
E.1 India’s Exports of Financial Services
E.1.1 Banking
E.1.2 Insurance
E.2 Barriers to India’s Trade in Financial Services
F. GATS & THE INDIAN FINANCIAL SERVICES INDUSTRY
G. OUTSOURCING & OFFSHORING IN FINANCIAL SERVICES – WHERE DOES INDIA STAND?
H. SWOT FRAMEWORK ANALYSIS OF THE INDIAN FINANCIAL SERVICES INDUSTRY
H.1 Strengths to Build Upon
H.2 Weaknesses to Overcome
H.3 Opportunities to Exploit
H.4 Threats to Overcome
I. PEST FRAMEWORK ANALYSIS
I.1 Political Aspects
I.2 Economical Aspects
I.3 Social Aspects
I.4 Technological Aspects
J. PORTER’S FIVE FORCES STRATEGY ANALYSIS
J.1 Bargaining Power of Buyers
J.2 Bargaining Power of Suppliers
J.3 Competitive Rivalry in the Industry
J.4 Threat of New Entrants
J.5 Threat of Substitutes
J.6 Conclusion
K. THRUST OF INDIA’S APPROACH TO NEGOTIATING STRATEGY IN FINANCIAL SERVICES
L. HOW TO MAKE THE INDIAN FINANCIAL SERVICES SECTOR MORE COMPETITIVE
L.1 Strengthening the Financial Sector
L.2 Required Regulatory Reforms
L.3 Reducing Government Involvement in the Financial Sector
M. MAJOR CONTRIBUTORS TO THE INDUSTRY
M.1 HDFC Bank Limited
M.2 ICICI Bank
M.3 Life Insurance Corporation of India
M.4 State Bank of India
N. INDIAN FINANCIAL SERVICES INDUSTRY: FUTURE PERSPECTIVE
O. APPENDIX
P. GLOSSARY OF TERMS
B. PROFILE OF FINANCIAL SERVICES IN THE WORLD ECONOMY
B.1 Trade & Investment Flows
B.2 Emerging Patterns in Global Financial Services Sector
B.3 Forces Driving Trends in the Sector
B.4 Costs & Benefits of Opening up the Financial Services Sector
B.5 Regulatory Issues and Developments
C. INTRODUCTION TO THE INDIAN FINANCIAL SERVICES SECTOR
C.1 Structure of the Sector
C.2 Market Profile
C.3 Industry Segmentation
C.3.1 Banking
C.3.2 Insurance
C.3.3 Mutual Funds
C.3.4 Stock Markets
C.4 Competitive Factors Boosting Industry Growth
C.5 Analyzing Market Patterns
C.6 Competition in the Industry
D. REFORMS IN THE INDIAN FINANCIAL SERVICES SECTOR
D.1 The Pre-Reform Scenario
D.1.1 The Banking System
D.1.2 Long-term Finance & Investment Institutions
D.1.3 Other Institutions & Financial Markets
D.2 Post-Reform & Current Scenario
D.2.1 The Banking System
D.2.2 Non-bank Financial Services
D.2.3 Insurance
D 2.4 Capital Markets
E. INDIA’S TRADE IN FINANCIAL SERVICES
E.1 India’s Exports of Financial Services
E.1.1 Banking
E.1.2 Insurance
E.2 Barriers to India’s Trade in Financial Services
F. GATS & THE INDIAN FINANCIAL SERVICES INDUSTRY
G. OUTSOURCING & OFFSHORING IN FINANCIAL SERVICES – WHERE DOES INDIA STAND?
H. SWOT FRAMEWORK ANALYSIS OF THE INDIAN FINANCIAL SERVICES INDUSTRY
H.1 Strengths to Build Upon
H.2 Weaknesses to Overcome
H.3 Opportunities to Exploit
H.4 Threats to Overcome
I. PEST FRAMEWORK ANALYSIS
I.1 Political Aspects
I.2 Economical Aspects
I.3 Social Aspects
I.4 Technological Aspects
J. PORTER’S FIVE FORCES STRATEGY ANALYSIS
J.1 Bargaining Power of Buyers
J.2 Bargaining Power of Suppliers
J.3 Competitive Rivalry in the Industry
J.4 Threat of New Entrants
J.5 Threat of Substitutes
J.6 Conclusion
K. THRUST OF INDIA’S APPROACH TO NEGOTIATING STRATEGY IN FINANCIAL SERVICES
L. HOW TO MAKE THE INDIAN FINANCIAL SERVICES SECTOR MORE COMPETITIVE
L.1 Strengthening the Financial Sector
L.2 Required Regulatory Reforms
L.3 Reducing Government Involvement in the Financial Sector
M. MAJOR CONTRIBUTORS TO THE INDUSTRY
M.1 HDFC Bank Limited
M.2 ICICI Bank
M.3 Life Insurance Corporation of India
M.4 State Bank of India
N. INDIAN FINANCIAL SERVICES INDUSTRY: FUTURE PERSPECTIVE
O. APPENDIX
P. GLOSSARY OF TERMS
