Recently, India surpassed which country to become the fourth-largest e...
India recently overtook Hong Kong as the world’s fourth-largest equity market, boasting a total market value of $4.33 trillion, surpassing Hong Kong’s $4.29 trillion. The leading global stock markets are currently the U.S., China, and Japan. This milestone underscores India’s rising prominence in the global financial arena, propelled by a robust GDP, political stability, foreign investments, and its appeal as an alternative to China. Meanwhile, Hong Kong grapples with challenges like COVID-19 restrictions, regulatory crackdowns, a property crisis, and geopolitical tensions, affecting its attractiveness to investors.
View all questions of this test
Recently, India surpassed which country to become the fourth-largest e...
Explanation:
India surpassed Hong Kong to become the fourth-largest equity market globally due to several factors:
Strong Economic Growth:
- India has been experiencing strong economic growth in recent years, which has boosted investor confidence in the country's equity market.
- The country's GDP growth rate has been consistently outperforming many other economies, attracting more foreign investments.
Government Reforms:
- The Indian government has implemented various reforms to make the equity market more attractive to investors.
- Initiatives such as the Make in India campaign and the introduction of GST have helped improve the business environment in the country.
Market Performance:
- Indian equity markets have been performing well, with many companies showing robust growth in earnings.
- This has led to increased investor interest in Indian stocks, driving up market capitalization.
Foreign Investments:
- India has been attracting significant foreign investments in its equity market, further boosting its size and ranking globally.
- Foreign institutional investors have been increasing their exposure to Indian equities, contributing to the country's market growth.
In conclusion, India's rise to become the fourth-largest equity market globally is a result of its strong economic growth, government reforms, positive market performance, and increasing foreign investments.
Recently, India surpassed which country to become the fourth-largest e...
Hong Kong is the correct option