New Delhi, March 14: India continues to outperform other major economies globally, showcasing robust economic growth and significant structural changes in its Capital Markets. According to the International Monetary Fund (IMF), India’s GDP Growth rate stood at 6.5% for the fiscal year 2024-25, with the economy expanding at a rate of 7.8% in the first quarter of fiscal year 2025-26.
While many large global economies are revising their growth forecasts downward due to policy uncertainties, India is advancing rapidly. The IMF has identified India as the fastest-growing major economy in the world, while China’s growth rate is projected at 4.8%.
The IMF also forecasts that India’s real GDP growth rate could remain at 6.6% for the entire year, even in the face of prolonged tariffs imposed by the United States. Earlier this month, the IMF indicated that India’s contribution to global GDP growth could reach approximately 17% in 2026, solidifying its status as the fastest-growing major economy.
In the IMF’s top ten countries list, the United States is expected to contribute about 9.9% to global GDP growth, followed by Indonesia at 3.8%, Turkey at 2.2%, Saudi Arabia at 1.7%, and Vietnam at 1.6%. Nigeria and Brazil are projected to contribute around 1.5%.
The impact of India’s strong economy is also evident in the significant changes occurring in the country’s capital markets. Meanwhile, the domestic mutual fund industry saw an increase of nearly ₹14 lakh crore in its asset base in 2025, bringing the total assets under management (AUM) to a record ₹81 lakh crore by November.
Investment through Systematic Investment Plans (SIPs) reached record levels in 2025, with annual contributions amounting to ₹3.34 lakh crore, compared to ₹2.68 lakh crore in 2024 and ₹1.84 lakh crore in 2023.
Historically, foreign investors had a more substantial influence on the Indian stock market, but the increasing participation of domestic investors is changing the market landscape. However, only 15 to 20% of households in India currently invest in the stock market and mutual funds, compared to 50 to 60% in the United States, indicating significant potential for the expansion of domestic investment in India.