GDP ratio hits 141%, nears two

India's market cap-to-GDP ratio, a widely followed measure of equity market valuation, climbed to 141% in July 2026, nearing the two-decade high seen in 2007 as a broader market rally and robust IPO activity added nearly ₹74 lakh crore in value since March. While stronger corporate earnings may help justify elevated valuations, the sharp rise has renewed debate over whether Indian equities are becoming increasingly expensive.