India achieves $5 trillion market capitalization milestone, triples in a decade of economic progress
India has achieved a significant milestone, with its market capitalisation crossing the $5 tn mark on Tuesday, tripling in a decade of robust reforms and economic progress. The most heartening features of this growth in wealth have been:
Fall in the share of foreign institutional ownership from 19.13% to 16.51%, accompanied by a corresponding rise in domestic ownership.
Small investors, typically participating through mutual funds, have seen their ownership rise from 3.33% to 8.87%.
For the first time since opening to foreign investors, domestic investors have gained a larger share of incremental wealth.
India is set to become the world's third-largest economy, with GDP expected to reach $5 tn within the next three years, and according to finmin projections, $7 tn by 2030. This remarkable achievement highlights India's growth and resilience amid global uncertainties.
Ten years ago, India was the 10th-largest economy with GDP of $1.7 tn. Despite facing macroeconomic imbalances and a weakened financial sector, it has climbed to 5th position, boasting an estimated GDP of close to $4 tn. A series of substantive and pragmatic reforms have fortified the economy against global shocks. Key reform areas include:
Governance improvements at district, block and village levels, making them more citizen- and business-friendly, particularly in healthcare, education, land and labour reforms, where state governments play a crucial role.
Public sector capital investment has surged from ₹5.6 lakh cr in FY15 to ₹18.6 lakh cr in
