India is a diverse country in many ways and perhaps one such arena is the age of successful companies in the country. On one hand, India boasts the third largest startup ecosystem with an increasing number of unicorns, and on the other hand, the listed companies are breaking their own record when the Indian equity market enters the top five clubs.
For the first time, India’s equity market has entered the top five clubs in the world in terms of market capitalization. The country’s total market cap stands at $3.21 trillion, ahead of some of the most loved markets of the world, namely, the UK ($3.19 trillion), Saudi Arabia ($3.18 trillion), and Canada ($3.18 trillion). At the start of this year, the UK and France were ranked fifth and sixth with a market capitalization of $3.7 trillion and $3.5 trillion, respectively.
The tumultuous situation around the globe, in the background of Russia’s military operation in Ukraine, has overturned the ranking of market capitalisation. The dent, perhaps, has been borne massively by European Nations. Case in point, Germany, which was formerly one of the top five markets, is now ranked tenth. Meanwhile, Saudi Arabia has climbed three places from 10th to 7th. The country, especially its largest firm Aramco, will benefit from a jump in oil prices this year.
The recovery of Indian markets over the last few days could be a reflection of the positive wave seen after election results, in addition to the ongoing peace talks regarding the Russia-Ukraine crisis. Further, now in India the long-term capital gains on listed equity shares, units etc. are liable to a maximum surcharge of 15 per cent, while the other long term capital gains are subjected to a graded surcharge which goes up to 37 per cent. There is a cap on the surcharge on long term capital gains arising on transfer of any type of assets at 15 per cent. These steps will give a boost to the startup community for sure.
Today India has the third-largest number of Unicorns in the world. More than 10 thousand start-ups have been registered in the last 6 months. Recent exponential growth in the number of unicorns in India is not only backing innovative solutions but also large scale deployments.
India has become a hotbed of start-ups including some of the difficult domains like defence. India has also deregulated many sectors like Drones, Space, Geo-spatial mapping and made major reforms in the outdated telecom regulations related to IT sector and BPO. The spirit of Entrepreneurship is high and shining bright in the times of Atmanirbhar Bharat. This strengthening of Indian Equity market’s standing in the global ranking bodes well for these wealth creators.
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