Bihar sees fastest growth in equity investors, joins top 10 states: Report

The highest number of investors in the country remains in Maharashtra, with nearly 1.9 crore people participating in the markets.

Bihar has recorded the fastest growth in stock market investor participation in India, the Business Standard has reported citing data from the National Stock Exchange (NSE).

Between financial year 2019-20 and May 2025, the number of registered investors in Bihar surged from 700,000 to 5.2 million, a growth of 678.8 percent. The increase is the largest among all Indian states, with a compound annual growth rate (CAGR) of 48.8 percent.

The jump has propelled Bihar among the top 10 states in terms of investor base, surpassing economically stronger states such as Delhi, Haryana, and Punjab, which have between 3 million to 5 million investors each.

The growth is particularly notable considering Bihar's low per capita income, which was just above Rs 60,000 in FY24, the lowest in the country. In comparison, Delhi's per capita income is Rs 460,000, Haryana Rs 730,000, and Punjab Rs 195,000.

Maharashtra still has the highest number of investors in the country, with nearly 19 million people participating in the markets. Uttar Pradesh follows with 13.1 million investors, and Gujarat ranks third with 10 million.

West Bengal and Rajasthan also feature prominently, each having more than 6.5 million investors. Despite its economic disadvantages, Bihar’s rapid growth rate has brought it close to these larger states.

Bihar’s enthusiasm for equity investments is also reflected in mutual fund trends. According to the Association of Mutual Funds in India (AMFI), 89 percent of the state's mutual fund assets are invested in equity schemes. This percentage exceeds that of neighbouring states such as Jharkhand (87 percent), Chhattisgarh (86 percent), and Uttar Pradesh (83 percent).

In contrast, more industrialised states tend to allocate a larger share of investments in debt funds, indicating a more conservative approach to investing.

This growing interest in the stock market is influencing career choices as well. For instance, Akshay Kumar, a resident of Bhojpur district, left his permanent government job during the COVID-19 pandemic to operate a franchise of Motilal Oswal Financial Services. Since making this change, his trading volumes have grown tenfold.