New Delhi [India], May 22 : The market capitalization of companies listed on the National Stock Exchange (NSE) has grown nearly six times in the past 11 years, said Ashish Kumar Chauhan, MD and CEO of NSE.
He was speaking at the 16th Capital Market Conference organised by the industry body ASSOCHAM in New Delhi.
Chauhan also pointed out that as of today, India has the fourth-largest equity market in the world, after the United States, China (including Hong Kong), and Japan.
He said, "India's equity capital markets have mirrored the strength and growth of the broader economy, reflecting the country's evolving economic landscape.... The market capitalization of NSE-listed companies has increased nearly sixfold in 11 years."
Chauhan also highlighted that since the NSE began operations in 1994, India's market capitalisation has grown over 120 times. Currently, the market capitalisation stands at around Rs 440 lakh crore, which is approximately USD 5.1 trillion.
Giving more details, Chauhan said the market capitalisation to GDP ratio has more than doubled in the last decade. It has grown from 60 per cent in FY14 to 124 per cent in FY25. This growth is significant, especially considering that no other country with a per capita income between USD 2,500 and USD 20,000 has a market size as large as India's.
He added that the market capitalisation of Indian equities is now nearly 1.6 times bigger than the size of the banking sector. This shows that capital markets are playing a bigger role in supporting the country's economic growth.
Chauhan also spoke about India's rising position in the global economy. He said India is expected to become the world's fourth-largest economy in 2025, overtaking Japan. At the start of this century, India was ranked 13th.
According to the International Monetary Fund (IMF), India is likely to cross USD 5 trillion by 2027 and become the third-largest economy by 2028. Chauhan said this growth is structural and not temporary.
It is driven by strong domestic consumption, formalisation of the economy, a wide digital public infrastructure, and a young population with a median age of just 28 years.
He also mentioned that India has already signed a trade agreement with the United Kingdom and is working on similar deals with other countries, including the United States.
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