Rising Consumption and Investment to Support India’s Medium-Term Growth: Crisil Report

New Delhi, Sep 15 (KNN) India’s medium-term economic growth is expected to be supported by strong domestic consumption, sustained public infrastructure spending and a revival in private investment, with rising per-capita income likely to reinforce the growth momentum and put the economy on a higher trajectory by 2030, according to a Crisil report.

The report cited International Monetary Fund (IMF) projections showing India’s per-capita GDP could grow by more than 9 per cent between 2027 and 2030, supported by rising incomes and productivity gains.

Rising Incomes to Boost Market Investments

As per-capita income increases, households are expected to allocate a larger share of their savings towards financial and market-linked investments. This shift could support investment, deepen financial markets and sustain economic momentum.

The report noted, “By 2030, India’s rising per-capita income should position the country for a higher growth trajectory and a more prominent place in the global economy,” according to ANI.

Crisil also highlighted a structural change in household savings, with an increasing share of the country’s large savings pool moving towards market-linked instruments, particularly mutual funds.

Mutual Funds Gain Share in Household Savings

The share of mutual funds in the gross flow of annual household savings increased from 3 per cent in 2020 to 13 per cent in 2025, indicating a significant shift in the way household savings are being intermediated.

Mutual fund assets under management (AUM) more than doubled from Rs 31.43 lakh crore in March 2021 to Rs 73.73 lakh crore in March 2026, registering an 18.6 per cent compound annual growth rate. This was significantly faster than the 11.2 per cent growth in bank deposits over the same period.

The industry’s AUM also touched a record Rs 82.03 lakh crore in February 2026, the report said.

Digitalisation, SIPs Support Financialisation

Crisil attributed the expansion of the mutual fund industry to rapid digitalisation, greater financial literacy and rising preference for systematic investment plans (SIPs).

The report said increasing formalisation of household finances, wider SIP-led retail participation, greater awareness, digital access and regulatory credibility have collectively strengthened the industry’s ability to attract assets beyond cyclical market movements.

The shift towards market-linked savings, it added, is likely to play an increasingly important role in supporting investment and financial market development as incomes rise through 2030.

(KNN Bureau)