India’s capital markets are witnessing an unprecedented surge in retail investor participation. The Economic Survey 2025-26, tabled in Parliament on Thursday, reveals that a staggering 2.35 crore new demat accounts were opened by December 2025 in the financial year 2025-26. This milestone underscores a growing financial literacy and confidence among Indian households, even as global trade uncertainties and geopolitical tensions loom large.
Despite fluctuations in foreign investments, Indian equity markets demonstrated resilience from April to December 2025. The Nifty climbed approximately 11.1 percent, while the Sensex rose by about 10.1 percent. This stability can be attributed to robust domestic investor engagement, strong corporate earnings, tax incentives, easing inflation, and accommodative monetary policies.
A key highlight emerged in September 2025 when the country surpassed 12 crore unique demat investors, with nearly a quarter being women. This democratization of investing extends beyond metros. By December, the mutual fund industry boasted 5.9 crore unique investors, including 3.5 crore from beyond Tier-1 and Tier-2 cities.
Household savings are shifting gears towards equities and mutual funds. Their share in annual domestic financial savings jumped from a mere 2 percent in FY 2011-12 to over 15 percent in FY 2024-25. Fueling this trend is the explosion in Systematic Investment Plans (SIPs), with average monthly inflows soaring from under ₹4,000 crore in FY 2016-17 to more than ₹28,000 crore so far in FY 2025-26.
The IPO market is booming too, with a 20 percent increase in issuances and 10 percent rise in funds raised compared to the previous year. SME listings hit a high with 217 companies raising over ₹9,600 crore. Meanwhile, the corporate bond market expanded at 12 percent annually over the past decade, issuing a record ₹9.9 lakh crore in new bonds in FY 2024-25, taking total outstanding to ₹53.6 lakh crore.
These figures paint a vivid picture of India’s maturing financial ecosystem, where everyday savers are embracing investment opportunities with enthusiasm and trust.