India shows strong macroeconomic stability, capital-raising activity remains robust: SEBI Chairman

New Delhi, Jan 22 (IANS) SEBI Chairman Tuhin Kanta Pandey said on Thursday that India continues to demonstrate strong macroeconomic stability amid ongoing global volatility in trade and geopolitics, as capital-raising activity remains robust, with the country ranking first globally in the number of IPOs and third in terms of capital raised in 2025.

Outlining the resilience of the Indian economy, Pandey observed that moderate inflation, robust foreign exchange buffers, and stable external accounts place India among the world’s strongest economies, with growth continuing to rank among the highest globally.

During his address to an investors’ meeting curated by the Confederation of Indian Industry (CII) in Osaka, Japan, he noted that India’s digital public infrastructure has set new global standards, while recent reforms in income taxation, labour regulations, and the GST framework are expected to stimulate consumption and reinvigorate the investment cycle.

Pandey described the rise of domestic investors as one of India’s most significant developments.

India today ranks as the world’s fifth-largest equity market by market capitalisation share, with the United States leading globally at 48.2 per cent, followed by China, Japan, and Hong Kong.

Mutual funds have deep penetration with strong monthly equity inflows, while the AIF industry has emerged as a key driver of private capital formation.

He further mentioned that debt markets continue to expand, private equity and AIF inflows are rising, and REITs and InvITs are increasingly channelising long-term capital into infrastructure and real estate. The municipal bond market is also gaining momentum.

Pandey stressed that investor education remains central to SEBI’s agenda, with intensified efforts to combat digital fraud and promote responsible investing. For Foreign Portfolio Investors (FPIs), SEBI has focused on simplifying market access through regulatory reforms, easier registration, and improved settlement mechanisms, alongside continued engagement with global investors.

India and Japan share a long-standing and symbiotic relationship anchored in their Special Strategic and Global Partnership, with bilateral trade exceeding $25 billion, underscoring the depth of economic cooperation.

Japanese investors have consistently found strong value and returns in India, which has produced a remarkable number of wealth-compounding companies, said Pandey.

Chandru Appar, Consul General of India, Osaka–Kobe, highlighted that India is currently in a high-growth phase, driven by its demographic dividend, rapid infrastructure development, and expanding consumption base, supported by landmark economic reforms over the past decade.

India’s capital markets are built on trust, transparency, and robust regulation, with SEBI playing a pivotal role in protecting investors and maintaining market integrity, Appar noted.

Setsuo Iuchi, President of the Osaka Chamber of Commerce and Industry, emphasized that India is a key partner for Japanese businesses, especially as companies seek opportunities in the Global South.

R Mukundan, President Designate, CII, said that India–Japan ties are built on shared values and institutional trust, with Japanese companies playing a vital role in India’s manufacturing, technology, and employment growth.

–IANS

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