How big is India's Investing TAM?

India has a population of ~142 crore people at present. However, not everyone has enough disposable income to invest in the stock market.

Therefore, we tried finding some relevant information about how many people could constitute the investing TAM of the Indian market.

~34 crores (25%) registered vehicles which are non-goods carrying vehicles. Out of this, ~27 crores are 2-wheeler owners.

~8 crores (5.6%) file income tax returns.

~4 crore (2.8%) invest in mutual funds.

Over 27 crore people in India own two-wheeler motor vehicles and over 7 crore people own vehicles other than two-wheeler motor vehicles.

The average cost of a two-wheeler motor vehicle is ₹40,000 to ₹45,000, while vehicles other than two-wheeler motor vehicles typically cost from ₹2,50,000 to ₹3,00,000 as a starting price point.

India holds great investment potential, yet the number of people actually investing is relatively low. Despite having a large population capable of financial investment, many individuals waste their disposable incomes on betting and gambling investment apps rather than investment options that can build wealth over the long term.

A cricket betting app claims to have over 21 crore downloads (maybe not unique downloads). If these users can bet/gamble to become rich overnight, they can surely start investing in mutual funds if they’re provided with the right kind of education.

A minimal investment of ₹500 to ₹1,000 per month through a systematic investment plan (SIP) could significantly improve financial stability for many. However, a lack of financial literacy poses an obstacle to general investment practices.

The financial services industry should join hands with the government of India to inculcate financial literacy as a part of the curriculum of schools and colleges. This will help in laying a very important foundation towards understanding the difference between zero-sum and non-zero-sum.