What Factors Are Driving India’s IPO Surge According to PHDCCI?
Click to start listening
Synopsis
India's IPO market has soared to new heights, eclipsing the US in 2025, according to Dr. Ranjeet Mehta of PHDCCI. This surge is attributed to enhanced investor confidence and a more inclusive capital market that welcomes retail participation, reflecting India's stable economic environment and growth potential.
Key Takeaways
- India surpassed the US in IPO listings in 2025.
- Investor confidence is at an all-time high.
- Retail investors are increasingly participating in the market.
- Political stability enhances India’s investment appeal.
- Sector diversity in IPOs signifies a growing market.
Mumbai, Dec 25 (NationPress) In an unprecedented achievement, India’s capital market has hit a remarkable milestone in 2025, outpacing the United States in terms of IPO listings. This significant development is indicative of profound investor confidence in the nation's economic and regulatory framework, stated Dr. Ranjeet Mehta, CEO and Secretary General of the PHD Chamber of Commerce and Industry (PHDCCI).
In an interview with IANS, Dr. Mehta emphasized that the impressive IPO activity in 2025 underscores the trust investors place in India's growth narrative.
“The regulatory frameworks and capital market systems in India have fostered a transparent and trustworthy environment,” he remarked.
“Unlike in previous years, participation is now inclusive, extending beyond just large corporates and foreign institutional investors. Retail investors, including first-timers and small investors, are actively engaging in the market, which demonstrates a burgeoning public trust,” Mehta elaborated.
He highlighted that amidst the ongoing global economic volatility, characterized by tariffs, trade disputes, and instability in various economies, India stands apart due to its political stability and consistent policy.
Dr. Mehta noted that India's growth momentum has remained robust since the pandemic period, establishing the country as one of the most appealing investment hubs globally.
“As the largest and most populous market worldwide, India currently enjoys unparalleled investor confidence,” he asserted.
Dr. Mehta also pointed out the significant transformation India has experienced over the past decade.
“Enhancements in the ease of doing business, tax transparency, and regulatory reforms have contributed to the establishment of a mature and resilient capital market ecosystem,” he stated.
He mentioned that the vision of a “Viksit Bharat” has reinforced public confidence and motivated broader participation in financial markets.
Regarding IPO trends, he observed that in 2025, India not only set new records but also surpassed the US in IPO listings. This accomplishment, he remarked, is a clear testament to investors' trust in India’s corporate governance, regulatory robustness, and long-term economic prospects.
He further noted that the increased involvement of young companies, startups, and firms from diverse sectors, including NBFCs, technology, and healthcare, signifies that India’s capital market has become more inclusive and focused on growth.
Point of View
The recent surge in India's IPO listings signifies a critical juncture in the country's financial landscape. The participation of diverse investors, including retail investors, illustrates a promising trend towards inclusivity in the capital market. Overall, India's commitment to enhancing its business environment and sustaining policy stability positions it as a formidable player on the global investment stage.
NationPress
25/12/2025
Frequently Asked Questions
What led to India's surge in IPO listings?
India's surge in IPO listings can be attributed to enhanced investor trust in its economic and regulatory framework, as well as increased participation from retail investors.
How has political stability affected India's investment climate?
India's political stability has fostered a conducive environment for investment, making it an attractive destination amidst global economic volatility.
What sectors are seeing increased participation in IPOs?
Sectors such as technology, healthcare, and non-banking financial companies (NBFCs) have seen significant participation, indicating a diverse and inclusive capital market.
Why is retail investor participation important?
Increased retail investor participation is crucial as it reflects a growing public trust in the market and contributes to the overall resilience of the capital market.
What reforms have contributed to this IPO success?
Reforms focused on improving the ease of doing business, enhancing tax transparency, and ensuring regulatory stability have significantly contributed to the success of IPOs in India.
