India's stock market capitalisation to GDP ratio ranks fifth globally, Says Economic Survey

Capital markets are becoming prominent in Indias growth story, with an expanding share in capital formation and investment landscape on the back of technology, innovation, and digitisation, according to Economic Survey 2023-24 tabled in Parliament on Monday. Indian stock market was among the best-performing markets, with Indias Nifty 50 index ascending by 26.8 per cent during FY24, as against (-)8.2 per cent during FY23. The market capitalisation of the Indian stock market has seen a remarkable surge, with the market capitalisation to GDP ratio being the fifth largest in the World. The presence of a robust Digital Public Infrastructure (DPI) and the greater involvement of banks and microfinance institutions (MFIs) have contributed to improved financial inclusion. The insurance and pension sectors are also doing well, as indicated by their expanding coverage.