India’s capital markets are undergoing a major shift as domestic household savings increasingly replace foreign institutional money. This transition strengthens market stability and enhances policy autonomy but also exposes new retail investors to higher risks, uneven participation, and potential overvaluation. With rising SIP inflows, booming IPOs, and declining FPI dependence, markets appear strong on the surface, yet structural issues—such as unequal access, performance gaps in active funds, governance concerns, and growing wealth inequality—require urgent attention. Ensuring investor protection, financial literacy, and transparent regulation is critical for converting this savings shift into inclusive and sustainable financial growth.
Click to View MoreIndian households are accumulating debt faster than they are building financial assets, with liabilities growing 102% between 2019 and 2025, while assets grew only 48%. Bank deposits remain the main savings vehicle, but mutual funds are increasingly popular. Rising household debt poses economic, financial, and social challenges, highlighting the need for financial literacy, responsible borrowing, long-term investments, and supportive government policies to ensure sustainable household financial health.
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