India Marked the Market Capitalization Milestone of US $5 Trillion

The poll-bound largest democracy in the world, where the market sentiments move with each political turnaround has created history in May 2024. This time, all BSE-listed companies surpassed the crucial milestone of cumulative market capitalization (m cap) of US $5 trillion. It showcases the country’s significant efforts towards macro-economic stability, ability to bounce back in adverse global financial conditions and successfully welcoming investors worldwide.

This advancement brought India into the club of US $5 trillion m-cap club, exclusively along with the USA, China, Japan, and Hong Kong. This market capitalization is driven by the significant investment done by the government towards cementing vital reforms to complement financial growth.

Over time, the official data revealed that the ownership of international establishments has followed a declining trend. However, at the same time, the contribution of domestic ownership has seen an upward trend including small-scale venture capitalists specifically those who are engaging via mutual funds. The government has launched several programs and initiatives including ‘Atmanirbhar Bharat’, ‘Make in India’, etc. These have helped the country to meet the market expectations and enhance the ease of doing business to deliver the 3Gs on priority i.e. growth, governance, and green.

India achieved this feather in the shortest timespan as all BSE-listed companies had hit the US $4 Trillion mark in November 2023 i.e. in less than six months. Before this, the BSE-listed companies achieved a market capitalization of US $3 Trillion, US $2 Trillion, and US $1 Trillion marks in the significant time intervals that are May 2021, July 2017, and May 2007 respectively.

India is expected to become the third-largest global economy and projects the country’s Gross Domestic Product (GDP) to cross US $5 trillion by 2027. It has also set the vision to become a developed nation with strong economic fundamentals by 2047. The last decade has witnessed an unprecedented growth of startups in India. The startups (unicorns) based on substantial growth have inspired stakeholders and investors from international and national markets to increase their share in the country’s market capitalization as well. The momentum will further push India to hold market stability with new green initiatives for sustainable development and economic growth.