India Market Tops $4 Trln Market Cap! How Does That Happen?

On Dec. 6th, the market cap of the India stock market surpassed $4 trillion, ranking only behind the United States, China, and Japan.

The NSE Nifty 50 index, a major benchmark in India, hit a new high with a surge of over 13% this year and is poised to achieve its 8 straight year gains.

Why is the performance of India’s stock market so impressive?

• Strong economic growth

The stellar performance in the India stock market closely follow India's economic growth, truly becoming an indicator of economic conditions.

India's economic activity remained robust this year, standing out amidst a global economic slowdown.

• Faster GDP growth than US

Analysts attribute the rapid economic growth partly to the continuous improvement in India's per capita GDP.

In 2022, India's per capita GDP reached $2388.6, a 27.77x increase from $83 in 1960.

During the same period, the per capita GDP in the United States increased from $3001 to $76328, a 24.43x rise.

• Young demographic structure

Analysts generally believe that India's rapid population growth, coupled with a relatively young demographic structure (with a median age of 28 years), further supports economic growth.

$Invesco India ETF(PIN)$ $iShares India 50 ETF(INDY)$ $WisdomTree India Earnings Fund(EPI)$