The Indian economy is estimated to have grown by 6.7 per cent in 2008-09. According to the latest Central Statistical Organisation (CSO) data, financial services and real estate sector rose by 9.5 per cent in the first quarter of 2009-10.

The government has taken a number of steps in recent months to revive the economy, including slashing interest rates, lowering factory levies and more than doubling the limit on foreign investment in corporate bonds. The financial services space is a rapidly growing one in India. The country received US$ 45 billion in foreign currency remittances from non-resident Indians in 2008, the highest in the world.

As per the Securities and Exchange Board of India (SEBI), number of registered FIIs as on January 29, 2010 was 1697 and the cumulative investments in equity since November 1992 to January 29, 2010, was US$ 72.51 billion.

The average assets under management of the mutual fund industry stood at US$ 173.16 billion for the month of December 2009, an increase of nearly 88 per cent from US$ 91.79 billion in December 2008, according to the data released by Association of Mutual Funds in India (AMFI).

Funds raised by the Indian corporate sector via ADRs/ GDRs has jumped over 33 times from around US$ 101.72 million in 2008 to about US$ 3.50 billion in 2009.

The country's foreign exchange reserves rose by US$ 741 million in one week to touch US$ 284.26 billion for the week ended January 8, 2010, according to the figures released in the Reserve Bank of India’s Weekly Statistical Supplement.

The World Bank and India have concluded negotiations for loans worth US$ 3.2 billion for recapitalising state-run banks and funding for the India Infrastructure Finance Company Ltd.

Qualified Institutional Placements (QIPs)

QIP is a capital raising tool, whereby a listed company can issue equity shares, fully and partly convertible debentures, or securities other than warrants, which are convertible into equity shares, to a qualified institutional buyer (QIB).

In 2009, Indian companies had raised close to US$ 7.18 billion by way of 45 QIP issuances.

Stock markets

India’s market capitalisation (m-cap) touched US$ 1.04 trillion in June 2009 making it the ninth largest in the world.

According to data from Bloomberg, India’s market cap as a percentage of world market cap was 2.8 per cent on December 31, 2009.

In 2009, there were 21 IPOs that raised US$ 4.25 billion as compared to 36 IPOs in 2008 that raised US$ 3.68 billion.

Aditya Birla Capital Advisors has raised US$ 146.89 million from domestic investors for its first India-centric fund as the Aditya Birla Financial Services Group’s private equity offshoot looks to invest in companies engaged in the education, healthcare, consumer-related business and infrastructure sectors.

Insurance

India is the fifth largest life insurance market in the emerging insurance economies globally and the segment is growing at a healthy 32-34 per cent annually.

According to a report by research firm RNCOS—'Booming Insurance Market in India (2008-2011)'—the total life insurance premium in India is projected to grow to US$ 259.72 billion by 2010-11. Life Insurance Corporation (LIC) is bullish on growth and is targetting business in excess of US$ 59.14 billion by 2011-12.

The government is planning to ease restrictions on foreign investments in insurance, banking and pensions, and allow foreign direct investment (FDI) of 49 per cent from the present 26 per cent.

The ‘Mallassurance’ delivery channel is first of its kind in India's insurance sector, selling life and general insurance policies through all Future Group retail outlets across the country. For Future Generali Insurance, a sizeable chunk of their customers now comes through the Mallassurance route.

Online sales take place through two major channels through direct sales by the insurers and through online insurance portals which offer a range of products from various insurers. The most active insurers online are ICICI Lombard, Bajaj Allianz etc.

Banking services

During 2008-09, State Bank of India (SBI) and associate banks advanced US$ 16.8 billion for infrastructure projects such as power plants and petroleum refineries. The big-sized credits have made SBI and group one of the largest project financiers in the country.