Forecast: Number of Cards with a Credit Function in India

The number of cards with a credit function in India stood at 54.34 million units in 2023, with a 3.85% year-on-year increase. Looking back, the market saw significant annual growth from 2013 to 2018 ranging between 10.06% and 25.62%, peaking at a CAGR of 19.68% during 2017-2018. A notable decline occurred in 2019 and 2020, with a subsequent recovery starting in 2021 reaching a 32.01% increase. However, growth stabilized in the following years, with a relatively modest 2.91% CAGR from 2018 to 2023.

Forecast data suggests a steady future growth with an average annual increase of 2.76% expected, projecting the volume of credit cards to reach 65 million units by 2028. This corresponds to a total growth rate of 14.59% over the next five years.

Some trends to watch for include:

• Continued urbanization and digital financial inclusion.
• Regulatory changes influencing credit card adoption.
• Technological advancements in fintech.
• Changing consumer spending patterns post-pandemic.