India to become the world’s 5th biggest stock market by 2024

According to Goldman Sachs, investors have been pouring money into India’s stock market. The bank says that it could increase to more than $5 trillion. Goldman Sachs predicts that India’s stock market might become the fifth largest in the world within three years.

The bank announced that Indian start-ups have raised $10 billion through IPOs so far in 2021. Furthermore, the investment bank reported that the pipeline for future public listings is likely to remain robust over the next two years. Moreover, 150 private firms could potentially list on the stock market over the next 3 years.

According to Goldman analysts, around $400 billion of the market cap could be added from new IPOs during the next 2-3 years.

They announced it could push India’s aggregate stock market value to rise to more than $5 trillion from $3.5 trillion by 2024. Moreover, they say that it will likely make India the fifth biggest in the world by market capitalization. If this comes to pass, they will surpass the United Kingdom and the Middle East.

Remarkably, many of India’s largest technology start-ups have stated plans to go public. This will lead to the beginning of a new era for the complete ecosystem.

India has over 800 million internet users and more than half a billion smartphone users

As we know, India is home to over 800 million internet users and has more than half a billion smartphone users. The growth is due to the availability of cheap mobile data. The COVID-19 pandemic also pushed many sectors online, including grocery delivery, shopping, education, digital payments and etc.

Even before the COVID-19 pandemic, several essential infrastructure developments in the country improved the ability of start-ups to scale up their businesses and grow.

The number of unicorns — start-ups valued at more than $1 billion — rose in India in recent years. The rise was led by the rapid growth in the internet ecosystem.

The bank estimated 67 private unicorn start-ups in India. According to the bank, 27 of them will likely hit the $1 billion valuation mark in 2021. Most of them are concentrated on India’s digital economy.

The investment bank announced that the country’s share in the global stock market value will rise from 2.8% to 3.7% over the next five years. That’s higher than Goldman’s forecast of a 40 basis points rise in India’s share of global GDP over the next five years.

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