India's market cap falls behind as global markets boom in 2025

Business Jan 04, 2026

India's stock market barely grew in 2025—up just 2.8%—while the rest of the world saw a huge 22.1% jump, according to a report cited by Motilal Oswal.
The report notes foreign investors pulling out, a weaker rupee, and worries over US trade deals held India back.
Because of this, India's share of the global market dropped from its September 2024 peak.

Other countries left India in the dust

While India stalled, places like South Korea (up 77%), China (34%), and Taiwan (31%) saw their markets soar.
Germany and even Pakistan posted big gains too—Pakistan rose over 51%, thanks to IMF support and lower interest rates.
It was a year where most markets raced ahead while India hit pause.