India’s economic growth is significantly propelled by its robust capital markets. These markets facilitate the efficient allocation of capital, promote investments, and drive long-term economic expansion. By channeling domestic savings into productive investments, capital markets play a vital role in fostering financial stability, wealth creation, and sustainable development, ultimately contributing to the country’s prosperity.
The Financial Survey 2024-25 highlighted India’s remarkable economic resilience despite navigating complex geopolitical uncertainties and domestic market volatility. As of December 2024, the Indian stock market achieved new highs, underscoring its robust character and potential for sustained growth.
The rise in listing activities and greater investor participation have been the main forces behind this expansion. The number of investors surged from 4.9 crore in FY20 to 13.2 crore as of 31st December 2024.
Get Complete Coverage on Budget 2025-26
The primary market witnessed a surge in listing activities in FY25, despite prevailing challenges. According to the EY Global IPO Trends Report, Indian stock exchanges have become attractive for foreign conglomerates to list their local subsidiaries.
India’s share in global IPO listings jumped from 17 percent in 2023 to 30 percent in 2024, making it the leading contributor to primary resource mobilization worldwide.
Total resource mobilization from primary markets stood at ₹11.1 lakh crore from April to December 2024. This marks a 5 percent increase over the total amount mobilized in FY24. Furthermore, this accounts for 25.6 percent of gross fixed capital formation by private and public corporations in FY24.
The number of IPOs rose by 32.1 percent, reaching 259 between April and December 2024, compared to 196 in the same period of the previous year. According to the Financial Survey 2024-25, IPO fundraising nearly tripled from ₹53,023 crore to ₹1,53,987 crore during this period.
Get Complete Coverage on Budget 2025-26
The mainboard platform saw a sharp rise in issue sizes, with the average IPO deal size increasing to ₹2,124 crore from ₹814 crore in FY24. Similarly, in the SME segment, the average IPO deal size grew to ₹39 crore from ₹31 crore.
India’s capital markets have demonstrated strong growth, bolstered by increased investor participation, heightened IPO activities, and regulatory stability. With India emerging as the global leader in IPO listings, the financial markets are poised for further expansion. The continued momentum in fundraising underscores domestic and foreign investor confidence, laying a strong foundation for economic growth.
Support our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates
