How Stock Market Affects Economy

How Stock Market Affects Economy

The Indian economy is the third-largest in purchasing power parity, which will continue to grow in the foreseeable future. That said, the country’s booming economy is likely to experience several ups and downs, including movements in its stock market, which can significantly impact its growth.

For instance, from 1994-2005, the stock market in India underwent significant systematic restructuring. During this period, the highlights of the Indian economy included a GDP growth of 6.1% on average. On the other hand, the Indian stock market remained immune to the pandemic-induced economic crisis during the second wave of Covid-19 in 2021.