New Delhi [India], May 8 : Expanding SME platforms, corporate bond markets, Real Estate Investment Trusts (REITs), and Infrastructure Investment Trusts (INVITs) will be critical for supporting entrepreneurship, infrastructure creation and employment generation in India, Union Finance Ministry officials said on Friday.
"India's MSMEs, startups, and emerging enterprises require deeper access to market-based financing. Expanding SME platforms, corporate bond market, REITs, INVITs, and innovative financial instruments will be critical for supporting entrepreneurship, infrastructure creation, and employment generation," said Shashi Kajle, IRS, Director - Financial Markets, Department of Economic Affairs.
She said while addressing the PHD Chamber of Commerce and Industry's (PHDCCI) 8th Annual Convention on Capital Market and Commodity Market themed 'Democratising Wealth Creation: Inclusive Capital Market for a Prosperous India'.
Kajle said that while participation in India's capital markets has widened significantly over the years, inclusion still remains an "unfinished agenda," particularly among women, rural households, small entrepreneurs and first-generation investors.
"Only about one-fifth of demat account holders are women. Bridging this gap is, therefore, not merely a social objective, but an economic imperative," Kajle said.
Highlighting India's broader economic transformation, Kajle said the country has moved from being the world's 10th largest economy to the 5th largest economy in just five years.
She added that India's market capitalisation has expanded from nearly USD 225 billion to around USD 5 trillion over the last 25 years, placing the country among the world's leading capital markets.
According to Kajle, India now has more than 21 crore demat accounts, with nearly 95 per cent of India's pin codes having at least one demat account, reflecting a structural shift in household savings towards formal financial assets and long-term wealth creation.
Kajle further said Indian equity markets delivered 131 per cent dollar-adjusted returns over the last five years, among the highest globally, while India's weight in the MSCI Emerging Market Index more than doubled from 6.3 in 2013 to 15.8 in 2025.
She also highlighted the growing role of domestic institutional investors, saying inflows of over Rs 7 lakh crore in the last financial year helped Indian markets remain resilient amid global uncertainties.
On financial inclusion through digital infrastructure, Kajle said nearly 90 per cent of Indians are now part of the formal financial system, aided by the JAM trinity Jan Dhan accounts, Aadhaar and mobile connectivity along with KYC reforms, DigiLocker integration and low-cost digital onboarding.
She added that the mutual fund industry has also witnessed strong growth, with assets under management increasing from Rs 22 lakh crore to over Rs 70 lakh crore in the last five years, while the number of unique mutual fund investors rose from 2 crore to 5.4 crore.
Kajle also said the Securities Markets Code aims to reduce complexity, eliminate overlaps and improve regulatory clarity while ensuring innovation and investor protection move in tandem.
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