India’s stock market has become a symbol of trust and resilience, despite the country's modest per capita income of $3,000. “Today, a poor person is paying money for another person’s business. It is a big thing. It is a leap of faith,” said NSE CEO Ashishkumar Chauhan at the WHEF 2024 event in Mumbai on December 13.
This trust, he said, is evident in the numbers. Currently, 10.7 crore Indians invest directly in the stock market, with over 20 crore demat accounts registered. “Twenty percent of Indian households are now investing in the stock market directly. There isn’t 20% even in Germany or France. But today, it is in India,” Chauhan noted.
This trust enables investors to believe in not only businesses but also the overall system, including the government, regulators, and financial institutions, he said.
Chauhan pointed out that India’s young population and technological advancements will drive the creation of wealth in the coming decades. “In the next 50 years, all the wealth that will be made in the world will be as much as what was made in the last 10,000 years. And who can make that wealth? The society that is young.”
India’s stock market has also opened new avenues for small and medium enterprises (SMEs), said the NSE CEO. “In the last 12 years, we have created an SME segment. More than Rs 15,000 crore has been deposited from the market in 572 companies. These companies have not been funded by private equity or venture capital, but by the trust of ordinary investors," he added.
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