Market Insights Financial Corporate Finance

Investment Banking - India

India

The revenue in the Investment Banking market is projected to reach US$15.50bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 1.95% resulting in a projected total amount of US$17.07bn by 2029.
From a global comparison perspective, it is shown that the highest revenue is reached in the United States (US$130.10bn in 2024).

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Analyst Opinion

The Investment Banking market in India is experiencing a significant growth trajectory driven by various factors.

Customer preferences: Indian customers are increasingly seeking diversified investment options and financial services to maximize their returns and manage risks effectively. They are showing a growing interest in investment banking services to access capital markets, mergers and acquisitions, and other financial advisory services.

Trends in the market: One notable trend in the Indian Investment Banking market is the rise of boutique investment banks that offer specialized services to niche clientele. These boutique firms are gaining popularity due to their tailored approach and expertise in specific industries. Additionally, there is a growing trend of foreign investment banks expanding their presence in India to capitalize on the country's robust economic growth and emerging opportunities.

Local special circumstances: The regulatory environment in India plays a crucial role in shaping the Investment Banking market. With regulatory reforms aimed at increasing transparency and investor protection, market participants are adapting to new compliance standards and reporting requirements. Moreover, the increasing digitization of financial services is transforming the way investment banks operate in India, leading to more efficient processes and enhanced customer experience.

Underlying macroeconomic factors: India's strong economic fundamentals, coupled with a growing middle class and increasing disposable income, are driving the demand for investment banking services. The country's favorable demographic trends, such as a young population and rising urbanization, are creating a conducive environment for investment and capital market activities. Furthermore, the government's initiatives to promote ease of doing business and attract foreign investment are bolstering the growth of the Investment Banking market in India.

Methodology

Data coverage:

Figures are based on the revenue generated by the Investment Banking market, as well as the transaction value, the number of transactions, and the average transactions size of the Mergers and Acquisitions (M&As) and Initial Public Offerings (IPOs) markets.

Modeling approach / Market size:

Market sizes are determined by a bottom-up approach and are based on a specific rationale for each market. As a basis for evaluating markets, we use market research and analysis, as well as data from annual financial reports. Furthermore, we use relevant key market indicators and data from country-specific associations and national data bureaus, such as GDP, wealth per capita, and total investment (% of GDP). This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. In this market, we use the HOLT-damped Trend method to forecast future development. The main drivers are GDP per capita and total investment (% of GDP).

Additional Notes:

The market is updated twice per year in the event that market dynamics change.