• New thought leadership report reveals that trust deficits and low financial confidence – not lack of awareness- are holding back wider retail participation in India’s capital markets.

National  : Primus Research, the knowledge and insights arm of Primus Partners, today released its latest thought leadership report, “From Savings to Stakeholding: Deepening Capital Market Participation for Viksit Bharat @2047”, highlighting the urgent need to broaden retail participation in India’s capital markets to support inclusive wealth creation and long-term economic growth.

The report finds that while India’s household savings rate remains among the highest globally, only about 5% of household financial savings are allocated to equities and market-linked instruments, insufficient to meet the goals of Viksit Bharat 2047.

As India pursues the vision of becoming a developed economy, the report argues that mobilising domestic household savings into productive assets will be critical to financing innovation, infrastructure development, MSME expansion and employment generation.

Drawing on primary research, interviews with over 35+ participants across diverse demographic groups and extensive secondary analysis, the study identifies key barriers preventing wider participation in public markets, including low financial confidence, trust deficits, misinformation, digital fraud concerns, language barriers and the perceived complexity of investment products.

To better understand investor behaviour, the report analyses five distinct investor personas: students, corporate professionals, homemakers, gig workers and blue-collar workers. While aspirations around wealth creation and financial security are common across these groups, the research finds that uncertainty and lack of confidence often prevent households from moving beyond traditional savings instruments.

Commenting on the findings, Shravan Shetty, Partner, Primus Partners, said: “Viksit Bharat @2047 will require Atmanirbharta in capital as much as in production. In an increasingly uncertain global environment, India cannot rely solely on foreign capital to finance its growth ambitions. With household gold holdings estimated at over ₹450 lakh crore, there is a substantial opportunity to channel savings towards productive, market-linked investments. Realising this opportunity will require stronger investor education, greater trust in financial markets, simpler investment journeys, and technology-enabled guidance that meets citizens where they are.”

The report also highlights the structural shift required in household financial behaviour. Despite rapid growth in demat accounts and mutual fund adoption over the past decade, a significant proportion of household wealth remains concentrated in traditional instruments such as bank deposits, gold, insurance and real estate.

According to the report, expanding participation is not merely a financial inclusion objective but a national development imperative. A broader retail investor base can help channel household savings into productive sectors while supporting long-term wealth creation for citizens.

Speaking on the role of digital platforms in democratising investing, Sandiip Bharadwaj, CEO, Paytm Money, said:

“India has already created one of the world’s most accessible digital financial ecosystems. The opportunity now lies in helping first-time investors move from access to confidence. Technology, combined with personalised financial guidance, transparent product journeys and strong investor guardrail frameworks, can play a transformative role in enabling millions of Indians to participate meaningfully in capital markets and benefit from India’s growth story.”

The report recommends a multi-pronged approach involving policymakers, regulators, financial institutions and technology platforms. Key recommendations include strengthening financial literacy programmes and investor guardrail measures, improving grievance redressal mechanisms, promoting simpler and more transparent product design, and leveraging AI-powered multilingual financial guidance to improve investor confidence at scale.

The report also examines international best practices, including Malaysia’s National Strategy for Financial Literacy and the European Union’s Retail Investment Package, to identify actionable lessons for India.

As India moves closer to its Viksit Bharat ambition, Primus Research believes that transforming household savers into long-term stakeholders will be critical for both inclusive prosperity and sustainable economic growth.