India to Become Global Lead IPO Market by 2035: Nilekani

India is expected to become the world’s IPO capital by 2035, driven by technological advancements, startup growth, and increased capital flow. 

India will become the most sought-after Initial Public Offering (IPO) market globally by 2035, Infosys co-founder Nandan Nilekani has forecast. He credited this future revolution to four main economic drivers: technology, capital, entrepreneurship, and formalisation. With all these forces set in motion, India is poised to grow into an $8 trillion economy in the next ten years. 

Key Factors Driving India’s Growth

In his speech at the Arkam Annual Meet 2025 in Bengaluru, Nilekani highlighted some of the developments that are redefining India’s economic direction. 

1. Technology as a Growth Catalyst

India’s fast-growing digital ecosystem is playing a key role in transforming the nation’s financial landscape. With increasing internet penetration, affordable data, and extensive use of digital payment modes such as UPI, technology is enabling growth across industries. Advances in Artificial Intelligence (AI) are also likely to benefit consumers and businesses, ensuring technological development reaches every corner of the country. 

2. Widening Capital Flow

Investment flow, both domestic and international, has been steadily increasing in India. With more investors attracted to the country’s economic growth, companies have greater access to funds. Additionally, Nilekani noted that firms previously listed overseas, in locations like Singapore or the United States, are now shifting their headquarters back to India to take advantage of domestic IPO opportunities—a shift he termed “Ghar Waapsi.” 

3. Entrepreneurship Boom

India’s entrepreneurial ecosystem is booming, with the number of startups expected to rise from the current 150,000 to over 1 million by 2035. This growth, projected at a 20% Compound Annual Growth Rate (CAGR), far surpasses India’s anticipated GDP growth rate of 8%. The buoyant startup culture is expected to drive IPO activity, as each successful IPO inspires the creation of numerous new companies. 

4. Economic Formalisation

Economic formalisation, facilitated by enhanced tax compliance, improved digital documentation, and robust regulatory frameworks, is promoting business expansion. As more companies formalise, India’s credibility in international finance markets strengthens, attracting even greater IPO participation. 

The Role of Startups in IPO Growth

Nilekani expressed optimism about India’s expanding startup economy, predicting that IPO growth will accelerate. With startups growing at a 20% CAGR, the country can expect consistent IPO launches. According to Nilekani, “Every time we have an IPO, there are going to be 100 more start-ups.” 

Notably, many of these new enterprises are emerging from non-metro areas, addressing local needs and providing solutions for rural and underserved markets. This geographic diversification is further boosting India’s economic growth and cementing its potential as a global IPO hub. 

Tokenization: Unlocking Land Capital

Another major growth driver identified by Nilekani is the tokenization of land assets. Currently, around 50% of Indian household wealth is tied up in land, much of which remains illiquid and difficult to trade. By leveraging blockchain technology, land ownership can be digitised into tokens, making land assets easily tradable and usable as collateral for loans. 

Nilekani estimated that land tokenization could unlock nearly $3.3 trillion in land capital, significantly increasing liquidity in the economy and empowering both individuals and businesses to leverage their land assets effectively. 

Future Growth Enablers

To achieve its ambitious $8 trillion economy goal, Nilekani identified several crucial focus areas: 

Artificial Intelligence for a Billion Indians: Utilizing AI to improve services across healthcare, agriculture, and education. 

Enabling Last-Mile Consumers and MSMEs: Providing smaller enterprises with improved access to capital, technology, and resources. 

Land Monetisation by Tokenization: Enhancing liquidity in land assets to drive economic activity. 

Facilitating Entrepreneurial Development Beyond Metro Cities: Encouraging business growth in Tier 2 and Tier 3 cities to ensure inclusive growth. 

Deregulation: Implementing policies to reduce bureaucratic hurdles and create a business-friendly environment. 

Through the synergy of technological progress, entrepreneurial innovation, improved financial infrastructure, and land capital unlocking, India is well on its way to becoming a major global economic powerhouse. As companies increasingly opt to list on Indian exchanges, IPO activity is expected to flourish. Nilekani’s vision highlights India’s potential to become the world’s leading IPO hub by 2035, creating new opportunities for investors, companies, and the broader economy.