India Witnessing Equity Revolution
Mumbai, November 7, 2025 – India's equity market is experiencing a significant transformation, marked by a surge in domestic investor participation and a growing sense of self-reliance. According to Ashish Chauhan, MD and CEO of the National Stock Exchange (NSE), the country now boasts a remarkable 12 crore (120 million) unique investors, signaling a new era of opportunity and volatility. This represents a seven-fold increase from the 1.67 crore investors recorded in 2014.
Speaking at the India Today Conclave in Mumbai, Chauhan emphasized that India's markets are increasingly anchored in trust and driven by domestic savings, a young, tech-savvy population, and strong faith in businesses. He noted that this combination positions India uniquely for long-term wealth creation, although he cautioned against speculative behavior.
The rise in investor numbers reflects a broader shift towards equity investment among Indian households. Approximately 20% of Indian households are now investing through the NSE, a trend Chauhan attributes to the country's expanding middle class. As households achieve financial stability, they are increasingly allocating funds to the stock market.
India's high savings rate, with approximately 30% of its GDP or $1.2 trillion saved annually, provides substantial capital to fuel its growth. This domestic savings pool, including investments through mutual funds, pension funds, and household savings, helps cushion the market from global volatility and ensures greater resilience. Data indicates that domestic institutional investors (DIIs) have been leading foreign portfolio investors (FPIs) for the sixth consecutive quarter, holding a record 18.4% share in Indian equities as of September 2025. This signifies a shift in market dynamics, with local money playing an increasingly dominant role.
Chauhan also highlighted the importance of technology and innovation in driving India's economic growth. He advised young investors to focus on entrepreneurship, noting that technology has lowered the barriers to entry for starting businesses. While acknowledging the potential of technology, Chauhan cautioned against unproductive day trading, especially for those lacking expertise in derivatives or the ability to withstand market shocks.
The NSE has played a crucial role in popularizing stock trading and making it accessible to the average Indian. In the 1990s, India had only about 1 million investors, and stock trading was considered a "game of the rich". Today, the NSE's market capitalization has soared to ₹450 lakh crore, approximately 125 times larger, with 11.8 crore unique investors. The exchange's emphasis on transparency and corporate governance has fostered investor confidence, encouraging more households to invest in Indian entrepreneurs.
Despite global headwinds and market fluctuations, Chauhan remains optimistic about India's long-term prospects. He highlighted India's demographic advantage, with a large and young population, and its increasing technological prowess. He stated that India is emerging as a crucial player in the evolving global order.
Chauhan envisions India's market capitalization reaching $50 trillion by 2047, coinciding with the 100th year of India's independence. To achieve this ambitious goal, he stressed the need for greater participation from Indian households in the equity market. He also stated that India's capital markets could potentially double in the next 5 to 7 years.
