Winning Bizness Desk

Mumbai. The number of stock market investors in North India has surged dramatically, quadrupling over the past four years as people shift from traditional investments like property and gold to equities. Leading this trend are the states of Uttar Pradesh, Delhi, and Rajasthan, with smaller states in East India also seeing a rapid rise in stock market participation. According to recent data, North India had a total of 88.4 lakh stock market investors in the financial year 2020. By July 2024, that number had grown to 3.57 crore, marking an increase of 304%. Western India has also seen substantial growth, with the number of investors rising from 1.08 crore in 2020 to 3.05 crore this year, an increase of 182%. In South India, the investor base has expanded from 75 lakh to 1.89 crore, a rise of 172%. Eastern India, which includes states like West Bengal, Odisha, and the North East, has experienced the sharpest growth rate of 296%, with investor numbers climbing from 30 lakh to 1.19 crore.

Increased awareness of stock market opportunities

The massive growth in retail investors is attributed to several factors, including rising incomes, increased awareness of stock market opportunities, improved internet access, and the widespread use of Aadhaar, which has simplified the process of opening trading accounts. Financial analysts predict that this trend will continue as more people across India become aware of the potential returns from stock market investments. Between April and July of this year alone, North India saw an increase of 33.3 lakh new investors. During the same period, Western India added 19.6 lakh new investors, while South India registered 14.9 lakh new investors. East India, comprising states such as West Bengal and Odisha, has added 89 lakh investors over the last four years.

Uttar Pradesh leading the front

A significant portion of this surge has come from previously underserved areas like Uttar Pradesh, where stock market participation was historically low. In 2020, Uttar Pradesh had just 23 lakh investors, representing 7.4% of the country’s total registered investors. However, by 2024, its investor count has jumped to 1.10 crore, increasing its national share to 11.1%. Meanwhile, traditional strongholds of stock market activity, such as Maharashtra and Gujarat, have seen a relative decline in their share of investors. Maharashtra, home to the financial capital of Mumbai, still leads with 1.67 crore investors, but its share has dropped from 19.2% in 2020 to 16.8% today. Similarly, Gujarat, which has 87 lakh investors, has seen its share decrease from 12.2% to 8.8%.

The shift in investor demographics indicates that stock market participation is no longer confined to metro cities or financial hubs, but is expanding to more rural and semi-urban areas, especially in the northern and eastern parts of the country. Experts believe this trend will continue to reshape India's financial landscape in the years to come.