In the past few months (or quarters), we often get the news of the turbulence Indian economy and financial system is going through. No one can deny those major threats. However, on the day of 74th Independence Day, let’s blur them for a while and focus on some positive facts about the Indian financial system.
Before starting, I would like to wish you all a Happy Independence Day.
Giving respect to today’s date, we will share 15 points, some famous, some not so famous, some positive and some not so positive but with huge room and potential of improvement in the next few years.
1) Bombay Stock Exchange or BSE is the oldest stock exchange in Asia. It was started by five stockbrokers under a 'Banyan tree' as the name of ‘Dalaal Street’. From its official establishment in 1875, its index – 'Sensex' has generated a whopping 8000% of the return.
2) Currently, BSE is the biggest stock exchange in the world by the number of listed companies. It has more than 5500 actively traded companies. Check out the chart to compare it with other leading stock exchanges in the world.
3) BSE is the fastest stock exchange to trade with a median clock time of 6 microseconds. Yes, it’s BSE again!
4) India is 10th in terms of market capitalization and recently reached a market cap of $2 Trillion. We can see huge potential if Indian markets after being 10th in market cap with the highest number of listed companies.
Source: FINSHOTS
5) We have many times heard that only 3-4% of people in India invest in stock markets whereas the same number in the US is 40-45%.
But considering the big population gap between both countries, we can understand that there is not a huge difference as it looks like in the absolute number of investors in both countries taking the development stage of India in the count.
With technological advancements and growth of FinTech platforms, this number is expected to take a huge jump in the next few years.
A big credit of this also goes to all those pages, blogs, and channels that are providing financial knowledge to people. (FinBus is one of them! So, don’t forget to subscribe.)
6) There are 21 stock exchanges in India apart from BSE and NSE (National Stock Exchange).
7) The national stock exchange has 2nd largest volume in derivatives in the world. To break them it is 2nd largest in options and 3rd largest in Futures. (Also with to so friendly regulations)
8) The Indian economy has observed a growth of 6 times in the last 2 decades. It was at $450 B in 1999 and in 2018 it was $2.72 T. Still the current numbers are undervalued!!
9) Justifying that, India is the fastest-growing economy (neglecting situation of COVID) with an expected expansion of 7.4%. The expansion rate of China is 6.3% and the US is 2.5%.
10) Between 2003 to 2008, the Indian economy had seen a growth of 9% per year.
11) In the past few years, India is spending 5-9% of GDP to control violence within the country and with countries. I believe it’s the high time that we create a more peaceful environment (at least with in the country).
12) “India was the richest country!” “Those British looted us”. Well, I won’t deny that. But that era was of the agricultural revolution, and with favorable situations of agriculture, India was able to export more. In this era of the post-industrial and digital revolution, we must go with the flow.
There are almost 50% of the population in India is still dependent on agriculture. The positive side is due to automation in farming, a good amount of population will move to other sectors from agriculture.
13) The agricultural sector is one of the most underpaying sectors in India, and because of that income per capita on India stands at 70th position in the world.
14) “But bro! The Indian rupee is going down every day, everything is unfavorable for us.”
Currency becoming weak is not a good sign anyhow. However, Indian IT companies earn most of their revenue from exports. Hence their earnings are in the dollars, and dollar getting stronger against rupee will generate them more revenue. (As I said, only positive things)
15) I am leaving the last point on you to think or add.
With that note, I just want to convey that, sometimes we should also look at the positive side of our country, and no other day is better than this for a sight change. Happy Independence Day to all, once again!
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