New Delhi, March 14: India’s economy continues to outperform major global peers, with strong growth momentum and a structural transformation underway in its capital markets. After recording GDP growth of 6.5 per cent in FY24-25, the country’s economy expanded by 7.8 per cent in the first quarter of FY2025-26, according to the IMF.
At a time when several large economies are slowing and revising their forecasts downward amid policy uncertainties, India is accelerating. The IMF currently positions India as the fastest-growing major economy globally, ahead of China, whose growth is projected at 4.8 per cent.
Moreover, the International Monetary Fund (IMF) has projected real GDP growth of 6.6 per cent for the full year, even under the assumption of prolonged tariff measures by the United States, according to reports.
Earlier this month, the IMF said India is expected to contribute as much as 17 per cent to global real GDP growth in 2026 as it continues to remain the world’s fastest-growing major economy. Among the other countries in the IMF’s top 10 list, the United States is expected to contribute 9.9 per cent to global real GDP growth, followed by Indonesia with 3.8 per cent, Turkey at 2.2 per cent, Saudi Arabia at 1.7 per cent, Vietnam at 1.6 per cent, while both Nigeria and Brazil are projected to contribute 1.5 per cent each.
The country’s macroeconomic strength is also reflected in structural changes taking place within its capital markets. Meanwhile, the domestic mutual fund industry added about Rs 14 lakh crore to its asset base in 2025, taking the total assets under management (AUM) to a record Rs 81 lakh crore by November.
Annual SIP contributions reached an all-time high of Rs 3.34 lakh crore in 2025, up from Rs 2.68 lakh crore in 2024 and Rs 1.84 lakh crore in 2023. Historically, Indian equity markets were largely influenced by foreign capital flows.
However, rising domestic participation has begun to reshape market dynamics. Despite the recent surge in participation, only around 15–20 per cent of Indian households currently invest in equities and mutual funds, compared with 50–60 per cent participation levels in the United States, indicating significant scope for further domestic market expansion.
IANS
