New Delhi’s financial circles are buzzing with optimism as SEBI Chairman Tuhin Kanta Pandey declared the surge in domestic investors as one of India’s most pivotal developments. Speaking at a key CII meeting in Osaka, Japan, Pandey highlighted how this trend underscores the nation’s economic resilience amid global trade tensions and geopolitical uncertainties.
India’s markets have shown remarkable stability, with companies successfully raising substantial capital. In 2025, the country clinched the global top spot for IPO numbers and ranked third in funds mobilized through public offers. Pandey attributed this success to declining inflation rates, robust foreign exchange reserves, and steady external accounts, positioning India as one of the world’s strongest economies with the fastest growth trajectory.
The digital public infrastructure is setting new global benchmarks, Pandey noted. Reforms like GST 2.0, updated labor codes, and income tax reductions are breathing fresh life into consumption and investment cycles. Currently, India’s equity market stands as the world’s fifth largest by market capitalization share, trailing only the US, China, Japan, and Hong Kong.
Mutual funds are deepening their market penetration, with monthly equity inflows on the rise. The AIF industry has emerged as a key driver of private capital formation. Debt markets continue to expand, private equity and AIF investments are surging, while REITs and InvITs are channeling long-term capital into infrastructure and real estate. Even municipal bonds are gaining momentum.
Investor education remains central to SEBI’s agenda, with intensified efforts against digital frauds and to promote responsible investing. For foreign portfolio investors, SEBI is streamlining access through regulatory reforms, simplified registration, and improved settlement mechanisms, alongside sustained global engagement.
This domestic investor boom signals a maturing market poised for sustained growth, Pandey emphasized, painting a bright picture for India’s financial future.