Pradeep Bhandari
India’s economic narrative today goes far beyond GDP charts and fiscal metrics.
It is being written by Prime Minister Narendra Modi’s decisive leadership and the aspirations of everyday citizens, particularly through a surge in retail investor participation.
From just 2.1 crore demat accounts in 2013, India is expected to touch 18.5 crore by 2025.
Retail participation in equity markets has grown from one crore investors to over 11 crore—an elevenfold increase in a decade.
This transformation is no coincidence. It stems from a digital-first, reform-focused governance model that has empowered India’s middle class to become active wealth creators.
Equity over savings: A cultural shift
More than just numerical growth, this marks a shift in national financial psychology.
Indian households, once cautious savers, have become confident investors, owning the equity journey and betting on India’s future.
Mutual fund SIP inflows hit a record ₹26,459 crore in December 2024, and the NSE alone added 84 lakh new accounts in FY25.
These trends are underpinned by PM Modi’s reforms—Jan Dhan, JAM Trinity, Digital India—which built an accessible ecosystem of trust and transparency, fuelling confidence in market-led growth.
Data shows a structural shift in India’s economic demography.
As per the PRICE income report, the lower-middle class shrank from 36.7 crore in 2015 to 32.7 crore in 2023, while the middle class expanded from 57.9 crore to 64.8 crore.
The upper-middle class nearly doubled—from 13.5 crore to 28.2 crore—during the same period.
This upward mobility is a product of welfare-led, reform-driven governance that enables an aspirational India.
Even in rural India, transformation is visible. NABARD’s All-India Rural Financial Inclusion Survey (2021–22) revealed a 57.6% jump in rural household monthly income in just five years, from ₹8,059 in 2016–17 to ₹12,698 in 2021–22.
Policy continuity & global confidence
At the heart of this transformation lies political stability.
PM Modi’s historic re-election for a third term underlines India’s preference for steady, visionary governance.
With India’s GDP expected to double from $2.1 trillion in 2015 to $4.3 trillion by 2025—surpassing Japan—global markets are responding to performance, not slogans.
India’s 6%+ projected growth, as per the IMF, stands in sharp contrast to stagnating Western economies.
India isn’t merely reacting to global headwinds; it is charting its own course.
Sound financial behaviour & fiscal strength
Motilal Oswal reports that net household financial savings rose to 7.3% of GDP in H1 FY25, up from 3.7% last year.
The RBI also reports a drop in personal liabilities—from 6.9% to 4.7% of GDP—signalling a shift to healthier financial habits.
This growth in savings isn’t a drag—it’s a catalyst. It empowers both government and private players to fund infrastructure and innovation domestically.
A nation that saves more builds more.
India’s export ecosystem is also thriving, with outbound trade up 37%.
From pharmaceuticals to electronics, India is exporting trust, scale, and innovation—not just importing global goods.
This deep economic progress is no accident. From GST to DBT, PLI schemes to DPI, PM Modi has ensured reforms transcend election cycles.
That continuity builds investor confidence. And when families see purpose-driven governance, they participate in its vision.
Over 25 crore people have exited poverty. Extreme poverty now stands below 1%. Per capita income has doubled—from ₹86,000 in 2014 to over ₹2 lakh in 2025—with rural and semi-urban India driving the surge.
At a time when much of the world grapples with stagnation and uncertainty, India under PM Modi stands out—delivering growth with stability, vision with execution.
In his third term, PM Modi is not just governing—he’s steering a national transformation.
India today saves more, invests more, exports more, and aspires more. And the world is watching, markets are reflecting, and the people have reaffirmed it.
Also Read: India’s Energy Security: PM Modi’s Vision That Shields The Future
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