BlackRock’s latest research shows that household savings earmarked for capital markets will rise from a modest 5% of net additions to a hefty 20% by 2035, a four‑fold acceleration that could inject roughly ₹20 trillion into the domestic equity and debt landscape.
Passive mutual funds have already tripled as a distribution channel, with assets under management leaping from ₹1.91 lakh crore in 2019 to ₹14.7 lakh crore by September 2026. Equity‑oriented index funds now account for ₹2.4 lakh crore of the ₹3.2 lakh crore total, underscoring the shift toward low‑cost index vehicles.
Ben Powell, Chief APAC & Middle East Investment Strategist at BlackRock Investment Institute, cautioned that foreign investors will likely stay cautious until US midterm uncertainty subsides, yet he remains confident that India will remain a top choice once political risk dims.
If the projected 4x rise materialises, domestic liquidity could offset the current foreign‑inflow lag, giving NIFTY 50 a steady funding base and supporting higher corporate pricing power, especially in tech giants that drive the index.
The growth in household participation also hints at a broader asset‑class expansion that could lift banking and securities intermediaries, with depositories and asset managers poised to capture the uptick in transaction volumes.
BlackRock estimates that the shift could bring an additional ₹20 trillion of capital into the Indian market by 2035, a figure that would support sustained earnings growth and potentially lift the BSE Sensex into a new plateau over the next decade.