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From 4% to 13%: India’s Rapid Expansion in Retail Market Participation

India’s retail investor base continues to expand rapidly - from 4% of the population before the pandemic to over 13% in FY25. With financial literacy, fintech innovation, and domestic confidence converging, the next leap in Indian equity participation has only just begun.

,   and  Datum Intelligence
1 min read

Table of Contents

Demat account penetration in India has risen from just 3.9% in FY21 to 13.4% in FY25, reflecting a dramatic rise in retail participation in equity markets.

This acceleration mirrors the broader digital financial inclusion wave - powered by the proliferation of discount brokers, seamless digital KYC onboarding, and rising investor awareness post-pandemic.

What It Means

  • Despite tripling in just four years, India’s equity participation remains low compared to developed markets (typically 40–50% of households), highlighting significant headroom for future growth.
  • The shift toward mobile-first investing and commission-free trading platforms continues to onboard millions of first-time investors from smaller cities.
  • Retail participation is likely to be a structural force in driving liquidity, domestic flows, and valuation resilience in Indian capital markets.

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