India: A Powerhouse in Global Capital Markets

India is establishing itself as a stable global capital market hub, with market capitalization reaching USD 4.4 trillion. In FY26, USD 154 billion was raised via equity and debt markets. This growth is driven by diverse sectoral investment and regulatory reforms fostering international participation.

India is steadily carving out its niche as a reliable global capital hub, according to SEBI Chairman Tuhin Kanta Pandey. Speaking at a high-profile meeting organized by CII and the USIBC during the IMF-World Bank Spring Meetings, Pandey reported impressive market statistics despite global market volatility.

Highlighting the resilience of Indian capital markets, Pandey noted that the country currently boasts a market capitalization of USD 4.4 trillion. In 2025 alone, India ranked first in IPO volumes globally. As of FY26, the nation has raised over USD 154 billion through equity and debt markets, with mutual funds nearing USD 900 billion in assets under management.

Pandey emphasized that India's robust financial architecture is driving economic growth, underpinned by a projected GDP increase of 7.6% for FY26. The country is not merely seen as an emerging market but a standalone investment hub, bolstered by a diverse sectoral mix including tech, healthcare, and energy.

The Chairman pointed out ongoing reforms aiming to balance investor protection, market development, and integrity. Key initiatives include T+1 settlement cycles and streamlined IPO processes. SEBI is committed to regulatory reviews aimed at easing registration for foreign investors and harmonizing KYC processes.

The digital transformation also extends to a dedicated portal for foreign investors and simplified KYC norms for NRIs, bolstering private capital and derivatives markets. Despite challenges in secondary market liquidity and taxation, alternative investment funds provide crucial capital for emerging sectors.

(With inputs from agencies.)