Female participation in the Indian stock market has been on the rise since 2022, reflecting a growing trend of gender inclusivity in the financial ecosystem. A recent report by the National Stock Exchange (NSE) indicates that women's share in new individual investor registrations has been gradually increasing, reaching nearly 25% as of December 2024. This marks a significant increase from previous years, with the number of female investors growing 6.8 times since 2015.
Several factors contribute to this positive shift. Increased financial literacy among women, rising labor participation rates, and greater awareness of investment opportunities are driving more women to participate in the stock market. The rise in digitization and streamlined Know Your Customer (KYC) processes have also made it easier for women to enter the market.
While the trend is positive overall, there are regional disparities in female investor participation. Delhi leads the way with 30% female representation in stock market participation, followed by Maharashtra (28%) and Tamil Nadu (27.7%). These states have a higher share of female investors than the national average of 24.1% in CY24. However, states like Bihar (15.6%), Uttar Pradesh (18.4%), and Odisha (19.7%) lag behind, with a female investor base below 20% of total individual registrations in their respective regions. This highlights the need for targeted efforts to promote financial literacy and investment awareness among women in these regions.
The NSE report also highlights the growing dominance of young investors in the Indian stock market. The proportion of investors aged below 30 years has risen significantly from 22.7% in 2018 to 39.9% in 2024, making them the largest investor group. This increasing participation of young individuals has changed the demographic pattern of the stock market. The share of mid-aged investors (40-49 years) has dropped from 20.1% in 2018 to 15.6% in 2024. Similarly, the percentage of investors over 50 years has declined from 26.2% to 15% in the same period.
The rise in female and youth participation in the stock market has had a positive impact on the market's overall growth and stability. Retail investors, including women, now constitute a significant force in the market, driving growth and offsetting selling pressure from foreign institutional investors (FIIs). Monthly Systematic Investment Plan (SIP) inflows have also crossed significant levels, indicating the growing confidence of retail investors in the market.
Despite the progress, there is still room for improvement. While nearly 25% of investors in the Indian stock market are women, this number should continue to grow to bridge the wealth gap. Indian women own less than 30% of the national wealth, which is lower than the global average. Increasing financial literacy among women is crucial to achieving this goal. Currently, only 21% of Indian women are financially literate, compared to the global average of 30%. By empowering more women with financial knowledge and providing them with the tools and resources they need to invest, India can create a more inclusive and prosperous stock market for all.
