India Facing Issue of Unemployability in Financial Services Sector: FPSB India CEO
India is facing a major issue of unemployability in the financial services sector, with nearly 18 lakh jobs going unfilled last year, according to a top official of the FPSB India (Financial Planning Standards Board). GIFT City in Gandhinagar, which currently employs around 6,000 people in the financial services sector, is set to generate nearly 1.5 lakh jobs in the next five years, said FPSB India CEO Krishan Mishra.
Mishra highlighted that despite the creation of 46.86 lakh jobs in the financial services sector last year, only 27.5 lakh jobs were filled, indicating a lack of qualified individuals to take up these roles. He emphasized the need for trained professionals in banks, insurance companies, brokerage houses, and mutual fund companies, pointing out that there are approximately 40 times more job opportunities than Certified Financial Planner (CFP) professionals available.
Currently, there are 2,731 CFP professionals in India compared to 2.23 lakh worldwide. Mishra projected that by 2030, there will be around 10,000 CFPs in India, but the demand for such professionals is expected to be much higher at 1,00,000 due to the growing need for financial planning services.
To address this gap, FPSB India has partnered with the Indian Institute of Management Ahmedabad (IIMA) to launch capacity-building initiatives for professionals in financial planning and investment advisory services. Additionally, a recent MoU with the International Financial Services Centres Authority (IFSCA) at GIFT City aims to promote the city as a ‘Global Finance Hub’ and attract skilled professionals to meet the expanding workforce demands.
Mishra stressed the importance of financial education for all individuals, noting that while wealth management may be perceived as for the elite, financial planning is essential for everyone. With the expected growth in GIFT City and the increasing demand for CFP professionals, there is a significant opportunity for skilled individuals to enter the financial services sector and contribute to its development.
