During a recent speech at the 150-year celebration of the Bombay Stock Exchange, Union Finance Minister Nirmala Sitharaman addressed the challenges posed by global trade disruptions, including tariff wars and protectionist policies.

She noted that U.S. tariffs, intended to boost domestic manufacturing, have raised concerns about potential inflation and a global recession.

On April 2, 2025, former President Trump announced new tariffs of 26 percent on most Indian imports, which included a 90-day grace period for negotiations.

Following this announcement, global stock markets experienced volatility, although stability returned temporarily due to the U.S. government's delay in implementing the tariffs.

Despite these challenges, Sitharaman projected that India is on track to become the third-largest economy by the end of the decade, having progressed from the tenth largest in 2014 to the fifth largest by 2025.

She emphasized that India's strong macroeconomic fundamentals and resilience in financial markets provide a stable environment for investors, promoting policy stability and inclusive growth.

The growing role of Domestic Institutional Investors (DIIs), which recorded inflows of ₹6.1 lakh crore in the last financial year, indicates the increasing maturity and depth of India's capital markets.

India's capital markets have also seen significant growth, surpassing the U.S. in IPO volume and adding a record 4.1 crore DMAT accounts in February 2025, totaling 19.2 crore accounts.

The capitalization of India's stock markets exceeded US$5 trillion in FY25, making it the fifth-largest capital market globally, with a remarkable 131% dollar-adjusted return over the past five years.

Sitharaman highlighted the importance of innovation in stock exchanges to democratize investments and enhance accessibility for citizens, reflecting India's economic maturity.

She outlined the government's vision for capital markets, focusing on inclusivity, accessibility, and resilience, while ensuring that markets remain globally integrated and digitally secure.

In closing, Sitharaman urged stakeholders to prioritize transparency and governance, advising investors to remain patient and informed in the evolving market landscape.