How Far Can the Indian Stock Market Go?

May 8, 2025 3 min read

Global Exchanges See Massive Volumes

Trading volumes on global stock exchanges are reaching unprecedented levels. Focusing on the two major U.S. exchanges—the NASDAQ and the NYSE—the total trade volume is approximately $59 trillion.

The figure given below illustrates the depth and activity of these markets over time.

Source: Zerodha

China Follows Closely Behind

Following the U.S., the next largest trading volumes come from the Shenzhen and Shanghai Stock Exchanges in China, with a combined turnover of about $35 trillion. These numbers reflect the growing strength of China’s markets and the active participation of its investors.

Where Does India Stand?

India’s National Stock Exchange (NSE) ranks lower on the list, with a trading volume of around $3.4 trillion. While this is less than that of the U.S., China, Japan, and CBOE Global Markets, it still surpasses Hong Kong, Euronext, and several others. If we include the Bombay Stock Exchange (BSE) with the NSE, India’s total turnover could reach approximately $5.5 trillion.

The Growth Potential Is Huge

The gap between India and the top exchanges underscores one clear message—India has substantial room for growth. As the economy expands and more individuals invest, it is possible for the NSE’s trade volume to reach between $7 trillion and $10 trillion in the next decade. This growth would result in increased trading activity, deeper markets, and a stronger global presence.

What India Needs to Aim For

Despite being the fourth-largest economy by GDP, India lacks a sufficient number of companies competing on a global scale. For the Indian stock market to grow further, we need more companies to meet international standards. This would help attract more investments and enhance overall market activity.

A Positive Outlook for the Future

Comparing the turnover of global stock exchanges provides valuable insights. It highlights the potential trajectory of Indian markets. As the stock market ecosystem evolves and more investors become involved, the future looks promising for Indian exchanges. This journey is just beginning.

What are your thoughts on the projected growth of the Indian stock market, and do you believe our economy can sustain it? Drop your thoughts in the comments!

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    How Far Can the Indian Stock Market Go?