India’s Banking, Financial Services, and Insurance (BFSI) sector has witnessed an extraordinary transformation over the last two decades. The market cap of the Indian BFSI sector has surged more than 50 times, expanding to Rs 91 trillion in 2025 from Rs 1.8 trillion in 2005, reflecting a CAGR of ~22%, according to a study by Bajaj Finserv AMC.

The study highlights that the market cap as a percentage of GDP has significantly risen, from 6% in 2005 to 27% in 2025. This growth has been driven by robust financialisation, regulatory reforms, and India’s demographic dividend.

The study also highlights that the BFSI sector has consistently outperformed the broader market over the past two decades, as reflected in the Nifty Financial Services (NFS) Index versus the Nifty 50. Just after the global financial crisis recovery in 2009, NFS surged 80% in just six months compared to Nifty 50’s 64%.