Does Stock Market Development Promotes Economic Growth in India

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ACKNOWLEDGEMENT

This research study has been completed with the great support of my supervisor who helped me throughout this dissertation with his knowledge and precious propositions. I thank him for being a great support throughout the completion of this study. At the end, I would also like to thank my family and friends for their special inspiration and support.

DECLARATION

This dissertation is declared as the genuine one by (student's name) and has not completed through the aid of any other. Also, the dissertation has not been submitted to any other institution for the professional as well as academic examination previously. It represents my own ideas and views not particularly the ideas linked with the university.

Signed __________________ Date _________________

ABSTRACT

The research study highlights whether the stock market development promotes the economic development in India or not. The research study has analyzed different perspectives of the economic growth. The concept of the economic growth is associated with the growth of the Gross Domestic Product of the country. The GDP is the value of all final goods and services in the given period of time within the country. As there are generated more economic activity in the country, there is more economic growth and development. The economic growth enhances the revenues of the country and improves the economic conditions. The capital market of India is developing everyday as numbers of new companies are getting listed in the Bombay Stock Exchange that is considered to be the largest stock exchange in the country. At present, 22 firms are operating as the stock exchange companies among which the oldest is the Bombay Stock Exchange (BSE). The Bombay Stock Exchange (BSE) started its operation in 1875 that makes it the oldest stock exchange market in the whole region of Asia. In the past few years, there have been observed a drastic change in the stock market of India that is secondary market in particular. The operations of the stock exchange market have been modernized by adopting the latest online trading and technology used within the stock exchange. The Indian economy is developing at the rate that is faster than it is required at this early stage of development as the country has large number of companies that are getting listed in the stock markets with large total market capitalization. Literature on stock market growth development is still in the very early stages. Few economists have attempted to investigate different aspects of this issue. The stock market growth development is also related to the institutional investors and foreign participation policies. An expanding and growing stock market requires different things that include a sustainable positive economic growth rate, rational monetary policies and mild inflation.

TABLE OF CONTENTS

ACKNOWLEDGEMENTII

DECLARATIONIII

ABSTRACTIV

CHAPTER 1: INTRODUCTION1

1.1 Background of the Research study1

1.2 Problem Statement1

1.3 Aim and objective of the Research Study1

1.4 Significance of the Research Study2

1.5 Rationale of the Research Study3

1.6 Research Questions4

1.7 Structure of the Thesis4

1.7.1 Chapter I: Introduction4

1.7.2 Chapter II: Literature Review5

1.7.3 Chapter III: ...