Investment banking has been widely regarded as the top of the global financial ecosystem for many years – a business that creates and structures firms for mergers and acquisitions, IPOs, and capital formation needs of some of the biggest firms in the world. Historically speaking, the gravitational center of investment banking went around New York, London, and Hong Kong. However, now the sector has a new contender steadily rising: India.
The investment banking landscape in India is changing, fueled by longitudinal economic growth, a rise in unicorn startups, and an appetite for international capital. India is not just a place for back office work and product roles for multinational investment banks; India is now the nexus for deal-making and innovation in finance. So if you are a global citizen looking for a dynamic investment banking career path, the industry in India will offer a mix of opportunities, as said.
This blog post discusses the rise of India and investment banking, its early days, and its rapid rise toward something big, and why it is becoming an increasingly global professional career destination. Whether you are a student of finance, an investment banking professional, or a global citizen hoping to join the emerging markets, the journey of the investment banking industry in India.
Historical Context: Investment Banking in India
To understand the evolution of investment banking in India, one must understand this backdrop. Prior to the 1990s, India’s financial sector was tightly regulated, and brought little opportunity for investment banks to play a meaningful role. However, following the 1991 economic liberalization, foreign capital and investment banks were allowed into the Indian economy through a five-point initiative that included privatization and liberalization of capital markets.
As a result, here is where investment banking first saw global names such as Goldman Sachs, JPMorgan Chase and Morgan Stanley, as well as domestic names like ICICI Securities and Kotak Investment Banking, start to build upon their banks and offerings to clients, not to mention facilitate India’s first wave of public offerings and privatizations.
The technology boom, along with the formation of larger private equity firms, only continued to spur investment banking in India alongside deeper private equity and venture capital activity in the 2000s. During this time, large IT companies like Infosys and Wipro went public, demonstrating India’s respectable capability as a place to invest. By the 2010s, India had firmly positioned itself on the global financial map, with its investment banks not just participating in domestic deals but also advising on large cross-border mergers and acquisitions.
From cautious beginnings, investment banking in India has evolved into a dynamic industry capable of handling billion-dollar deals across sectors such as technology, energy, infrastructure, and consumer goods.
The Growth Drivers Behind Investment Banking in India
Several unique factors are driving investment banking activity in India, at what can only be called an unprecedented speed.
a) Economic Reforms and Liberalization
The liberalization of the early 1990s created a unique opportunity for investment banking to gain some traction in India, driven by either a tsunami of foreign capital or an easing of restrictions for private industry. The liberalization is still ongoing – evidenced by easing restrictions on FDI investing and access to IPOs, which are both crucial to investing banking.
b) Growth of India’s Economy
India continues to be one of the fastest-growing economies by GDP in the world and is consistently outperforming meta markets. The fast-growing startup ecosystem yields over 150 unicorns, which in turn provides opportunities for capital raising, advisory, and M&A activities. Investment banks have a facilitator role in all of these transactions, essentially connecting expertise in new and innovative types of businesses to capital in the rest of the world.
c) Increase in M&A and Private Equity Transactions Activity
In the past decade, high-value Cross-Border M&A transactions in India have been going up and up, whether measuring the number of high-value or high-value deals. Furthermore, the country has witnessed significant flows of both private equity and venture capital, positioning India among the leading choices with investors.
d) Digital Transformation in Finance
Technological change has also addressed investment banking in India. Automation and analytics powered by machine learning, and learning with fintechs, are improving operational efficiency with more capabilities. Investment banks in India leverage big data and other specialist technologies to provide value-added analysis for their customers.
e) Government Initiatives
Government initiatives like Make in India, along with the PLI (Production Linked Incentive) Scheme, and other tax incentives related to India have also contributed to encouraging foreign investment in India. These initiatives highlight the plan for investment banks to be involved in cross-border transaction assistance and assistance with capital raising.
These drivers further illustrate that India’s emerging role in investment banking is greater than just a ‘service center’.
India’s Place in the Global Investment Banking Map
Though New York and London are still considered the classic bastions of investment banking, India is developing its own unique standing on the world stage. In the past, global banks set up shop in India to save money by outsourcing middle- and back-office work to cities like Bengaluru, Mumbai, and Gurgaon. However, the story has changed dramatically in the last 10 years.
Today, India is more than just an operations center; it is also a deal center. Global firms increasingly involve their India teams for front office work, exploring M&A advisory, capital market deals, and financial structuring. This is a clear demonstration of both an evolving narrative and greater confidence in India’s talent and financial ecosystem in managing this type of work.
More and more, India is building on its role as a key player in executing large-scale transactions. Indian investment bankers are advising billion-dollar buy-side M&A transactions, helping with large infrastructure or green energy projects across Asia, Africa, and the Middle East. Even Indian-based firms like Kotak, Axis, and ICICI Securities are working alongside global powerhouses, structuring these complex transactions.
As India’s climb continues, it will inevitably have more comparisons to Hong Kong and Singapore as a regional investment banking hub with a young, skilled workforce and booming economy.
Key Career Opportunities in Indian Investment Banking
The investment banking sector in India is alive with opportunities in a number of roles, marked with front-office deal-making opportunities to specialized analytics. For those looking for a career path, the investment banking sector is dynamic and offers unprecedented growth potential.
a) Front Office Roles: Deal Making at the Center of It All
- Front office roles are the highest desired positions in investment banking, including:
- M&A Advisory – advising companies about mergers, acquisitions, or divestitures.
- Equity Capital Markets (ECM) – advising firms about raising capital through IPOs or follow-on offerings.
- Debt Capital Markets (DCM)- structuring bonds, loans, or debt-like instruments.
Analysts and associates working on front office teams are expected to have direct exposure to clients, high-value deals, and fundraising. For example, investment bankers were at the center of structuring the IPO process and introducing Zomato to large investors when the company went public in 2021.
b) Middle Office Roles: Risk & Compliance
In the middle office, professionals are still critical to the deal-making process, ensuring a deal complies with regulatory requirements and risk management. Based on the evolution of capabilities and compliance in India, compliance, risk, and legal advisory professionals are becoming increasingly desirable for investment banking. Although middle office roles are less sexy than front office, they are critical to ensure the process goes smoothly.
c) Back-Office Functions: Advanced Analytics and Financial Modeling
The back-office functions in India have changed considerably. Once viewed as support roles, they now involve a range of high-level analytics and financial modeling, and valuation services being performed for global teams. Many international banks depend on their offices in India to provide important functions that affect client strategies directly.
d) Niche Roles: Fintech, ESG, and Cross-Border.
As investment banking has evolved, niche areas are also becoming more significant:
- Fintech advisory – working with financially relevant digital-first companies.
- ESG – structuring sustainable finance deals for renewable energy and green infrastructure.
- Cross-border advisory – helping Indian companies expand out of India, and helping international companies to enter India.
Career Progression and Compensation
The path is usually analyst, associate, vice president, director, and then managing director. For analysts, salaries are typically between ₹12–20 lakh a year at the entry level, and senior professionals in leadership roles are compensated well into the crores, particularly in multinational firms.
The message is clear, both in core deal-making and growth areas, investment banking, with the right skill has a range of opportunities to explore.
Why Global Professionals Are Looking at India
The increasing relevance and significance of India in finance is attracting international experience. There are three main reasons for this:
a) Rising Salaries and Cost Advantage
While India is still inexpensive for multinational firms, India has become competitive in salary compared to typical senior investment banker salary levels in New York or London. For someone coming in from New York or London, the unique mix of compensation, cost of living, and the opportunity to work in a high-growth economy is attractive.
b) More and Bigger Deals
India is growing deal flow from billion-dollar mergers and acquisitions to more large-scale devolved infrastructure projects, and the transactional mix is broadening too. They like working in India because they can now get experience working in a multi-industry to pick 4 areas; technology, construction, energy, retail and healthcare.
c) Growth in Influence from India
India is not a support or more ‘next’ market; it is a market that is driving capital flows worldwide. *For example, Reliance Industries’ Jio Platforms raised 10 billion dollars in stake sales to Facebook and Google in 2020. This is an important and global transaction that occurred in India.
d) Cultural and Professional Advantage
India has an English-speaking talent pool, strong connectivity with the world, and a cosmopolitan workplace. Cities like Mumbai, Bengaluru, and Gurgaon now have successful expatriate communities of finance professionals.
e) Case Study
In India, a number of professionals from London and Singapore have relocated to head the investment banking operations of multinational banks. Their move is in part a reflection of India’s growth story, but also its ability to provide globally competitive challenges and opportunities.
For global professionals, India is becoming both a career destination and not a short-term posting.
Challenges in Indian Investment Banking
The process of investment banking opens up a wealth of opportunities for investment professionals to further develop themselves, but there are also obstacles.
a) Long Work Week and Stress Level
Like Wall Street, it is not uncommon for investment bankers at top investment banks in India to work 70-90 hours each week. The fast-moving, competitive, and high-stakes environment means that regardless of the day of year, all professionals must demonstrate an effective and exceptional commitment to work and code per hour.
b) Constantly Changing Regulations
In India, the regulatory environment is always changing, and as such, professionals are always challenged to keep up with an ever-changing regulatory environment. Even for experienced professionals, it can be even more challenging if they are new to the Indian market to stay up-to-date with an up-to-date awareness of developments in regulation from the SEBI, tax regulation, and internationally applicable reporting standards.
c) Highly Competitive Environment
Investment banking attracts some of the best talent from the IITs, IIMs, global MBA programs, and chartered accounting programs. Breaking into the top talent means producing an exceptional set of foundational academic achievements garnished with a networking strategy, professional references, and an established work history.
d) Shortage of Skilled Professionals in New Areas
The introduction of new areas such as ESG Finance, structured products, and fintech advisory has led to a lack of professionals with relevant experience, which creates opportunities but also creates a requirement to continue to upskill.
In conclusion, investment banking in India creates many interesting opportunities, but requires a level of hard work, flexibility, and ability to deal with the regulatory and cultural issues associated with the prospect of working in investment banking.
Preparing for a Role in Indian Investment Banking
For those who are interested in the opportunities in this space, preparation is critical. To be successful in investment banking, you will require a combination of education and technical skills, and working experience.
a) Education and Qualifications
An undergraduate qualification in finance, economics, or business administration provides students with a helpful foundation from which to build skills relevant to the task at hand. Having a post-graduate, such as a CFA, CA, FRM, and/or an MBA from a reputable institution, is generally valued by employers.
b) Importance of Internships
Gaining practical experience through internships is generally the fastest way to obtain a full-time job. Many of the top firms will hire analysts directly from their internship pools, due to the emphasis on practice.
c) Networking and Mentorship
Whether through professional networking, attending financial conferences, or developing mentorship relationships, these can greatly increase the chances of success in finance careers. Networking by itself in India can lead to roles that do not even make it to a job posting.
d) Training Programs and Specialized Courses
With the complexities of modern-day investment banking, a specialized course increasingly adds value to investment banking. Through an investment banking course, future investment banking professionals will learn practical knowledge, such as financial modeling, valuation, or deal structuring. Training programs are distinctly valuable as they provide an environment where theory and practice are integrated, enabling participants to tackle real-world problems on the first day, as they occur in practice.
e) Soft Skills
As discussed, it is important to keep soft skills in mind, such as communication, negotiation, and flexibility skills. Investment bankers are very close to clients and regulators, and work with global clients in teams. Thus, interpersonal skills will continue to be just as valuable as financial competencies.
Future Outlook
By the year 2030, it is anticipated that India will be one of the top three economies in the world. Investment banks will be a vital part of funding growth in technology, green energy, and infrastructure. The industry will be primarily driven by ESG investing, cross-border investing, and AI analytics. As multi-national investment banks expand their presence, India is on its trajectory to become a rival to global cities like Hong Kong for deal-making opportunities.
Conclusion
The emergence of investment banking in India is changing the investment landscape across the world, providing exciting opportunities for all investment professionals. There are bevy of choices, from billion-dollar IPOs to gaining access to sustainability-based deals. If aspiring bankers possess the skill, reach, and gap provided by an investment banking course, there is a high ceiling to grow in one of the fastest-growing financial markets in the world.
India is not just participating in global investment banking; it is assuming a leadership role. For global professionals who choose to make this jump, the benefits will be countless.
