New Delhi, March 14: India’s economy continues to outperform other major economies globally. With robust economic growth, significant structural changes are also taking place in the capital markets.
According to the International Monetary Fund (IMF), India’s GDP growth rate for the fiscal year 2024-25 is projected at 6.5 percent, while the economy expanded at a rate of 7.8 percent in the first quarter of fiscal year 2025-26.
While many large global economies are revising their growth forecasts downward due to policy uncertainties, India’s economy is advancing rapidly. The IMF indicates that India is currently the fastest-growing major economy in the world, with China’s growth rate expected to be 4.8 percent.
The IMF also predicts that India’s real GDP growth rate for the entire year could remain at 6.6 percent, even in the face of prolonged tariffs imposed by the United States.
Earlier this month, the IMF stated that India’s contribution to global GDP growth in 2026 could reach approximately 17 percent, solidifying its status as the fastest-growing major economy.
In the IMF’s top 10 countries list, the United States is expected to contribute about 9.9 percent to global GDP growth, followed by Indonesia at 3.8 percent, Turkey at 2.2 percent, Saudi Arabia at 1.7 percent, and Vietnam at 1.6 percent. Meanwhile, Nigeria and Brazil are projected to contribute around 1.5 percent each.
The impact of India’s strong economy is also evident in the significant changes occurring in the country’s capital markets.
In the meantime, the domestic mutual fund industry saw an increase of approximately ₹14 lakh crore in its asset base in 2025, bringing the total assets under management (AUM) to a record ₹81 lakh crore by November.
Investment through Systematic Investment Plans (SIPs) also reached record levels in 2025, with annual contributions totaling ₹3.34 lakh crore. This marks an increase from ₹2.68 lakh crore in 2024 and ₹1.84 lakh crore in 2023.
Historically, foreign investors had a more significant influence on the Indian stock market. However, the growing participation of domestic investors is changing the market landscape.
Despite this progress, only 15 to 20 percent of households in India currently invest in the stock market and mutual funds. In contrast, participation in the United States ranges from 50 to 60 percent, indicating substantial potential for the expansion of domestic investment in India.
My name is Himanshu Tiwari. I am an experienced content writer with several years of expertise in the field. Currently, I contribute to Daily Kiran, creating engaging and informative content across a variety of categories including TECHNOLOGY, health, travel, education, and automobiles. My goal is to deliver accurate, insightful, and captivating information through my words to help readers stay informed and empowered.
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