For the first time in seven years, Indian securities market has surpassed Germany’s in market capitalisation and is now the seventh largest in the world, reports Times Of India (TOI).

India’s benchmark stock market index, Bombay Stock Exchange’s (BSE) Sensex, has gained nearly 5 per cent this year (2018), though there were periods of intense volatility due to change in oil prices.

After Great Britain leaves the EU early next year (2019), France will be the only EU country that will be among the top seven stock markets worldwide. While the US continues to dominate the list, it is followed by China, Japan, Hong Kong, UK and France, in the respective order.

Germany, which is the largest economy in the EU, has been increasingly affected by the trade war between China and the US. Due to the US’s tariffs on goods imported from China, investors have turned wary of markets which are overly reliant on exports.

They appear to be favouring economies like India that have a robust domestic demand for goods. While 38 per cent of Germany’s GDP comes from exports, it is only 11 per cent for India.

Also, India is expected to be the fastest growing large economy in the world in the near future. With the current government steadily rolling out pro-business reforms, India’s Ease Of Doing Business (EODB) has improved substantially.

Also Read: In A First, China May Cut Taxes To Boost Domestic Demand As Export-Led Growth Shows Signs Of Slowing

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