Abstract

India is one of the fastest-growing economies in the world and has made significant strides in developing its financial markets over the past few decades. The paper concludes by highlighting the key findings and implications of the study. It suggests that the stock exchange can play a critical role in promoting economic development in emerging markets by providing a platform for capital formation and investment. However, the development of the stock market must be supported by a conducive policy environment, strong regulatory framework, and investor protection mechanisms. The study also highlights the need for further research on the relationship between stock market development and economic growth in emerging markets, particularly in the context of the on-going financial globalization and integration. The stock exchange is a critical component of any economy, and its role in the economic development of emerging markets is particularly significant. An emerging market is a country that is in the process of transitioning from a developing economy to a developed economy. These markets are often characterized by high growth potential, but also high risk due to their volatile economies. It plays a critical role in the development of emerging markets by providing a platform for companies to raise capital, facilitating investment, providing liquidity, and improving corporate governance. One of the primary ways in which the stock exchange contributes to economic development is by mobilizing capital. Companies can raise capital by issuing stocks and bonds, which allows them to finance their projects and investments. This, in turn, leads to economic growth.

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