Happy Republic Day to our friends and Risers from India. Thank you for being part of India Rising. It’s great to have you here.

Here are the topics of this week:

Recap: I hope you enjoyed the third issue of our India Rising Perspective “Inside the $1 Trillion Economy” by Godson George Micheal Rai and Priyadarshini Samikumar. “Tamil Nadu: The Quiet Rise of India’s Next Life Sciences Powerhouse” covered the state’s Life Sciences ecosystem and you can find my key takeaway at the end of the issue.

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The expected market cap of India’s listed companies within the next 5 years, reaching the third largest after the US and China.

Initial Public Offerings (IPOs) have been surging in India over the past years. Driven by listings from local players and Indian entities of multinational businesses alike, the continued high level of capitalisation efforts signals that India’s financial markets are maturing, and about to become an increasingly interesting market for global investors.

The financial market’s maturity is indicated in size, but also stability and origin of capital inflows. Leading market participants expect annual levels to remain above USD 20 billion, and India’s total market cap to reach USD 10 trillion over the next 5 years. In comparison, Germany currently has a total market cap of around USD 3 trillion, Japan USD 6.6 trillion, and the UK USD 4.4 trillion, making India’s soon the third largest after the US and China.

India’s IPO boom started in 2020, thanks to a mix of liquidity events fuelled by the pandemic, increased market access for “retail traders” due to the emergence of Fintech platforms, IPOs of popular tech startups such as Zomato, and streamlined regulatory processes. This development led to the largest IPO in India’s history, the listing of Hyundai Motor India for USD 3.3 billion in 2024.

These were the largest IPOs in India in 2025:

IPOs were high in number from a diverse group of sectors, but dominated by the Financial and Tech sector. While smaller in scale, several IPOs in green energy and manufacturing (Fujiyama Solar, Emmvee Photovoltaic) also indicate a healthy development in sectors that remain struggling in other markets.

The importance of India’s Tech sector is indicated by the following chart, showing that India has the second largest cohort of Tech IPOs globally:

However, several developments indicate that the IPO trend remains sector agnostic and is indeed continuing:

With India’s economy continuing to grow substantially, the interest by global investors is increasing. The mix of stable investments from domestic players, as well as capital inflows thanks to maturing regulatory conditions, are to be noted and lead to increasingly well financed businesses. On the basis of a stable and large domestic market, I expect these players to not only increase and defend their market share in India, but seek investments elsewhere and increase competition globally. European businesses must remain aware that entering the Indian market is a long-term commitment if you want to succeed.

Sources: IndianWeb2, The Economic Times, Companies Market Cap, TechCrunch, Times of India, Mingtiandi

The 16th EU-India Summit will take place in Delhi on January 27th and is expected to mark this pivotal year in the Indo-European partnership. Not only are adoptions to the EU-India Strategic Agenda expected, but the announcement of, or a major step forward for, the India-EU Free Trade Agreement (FTA).

The summit will be hosted by Prime Minister Narendra Modi and attended by both, the European Commission President Ursula von der Leyen and European Council President António Costa. The agenda focuses on a combination of the bilateral, as well as multilateral cooperation, between both regions.

For the first time, Prime Minister Modi and President von der Leyen will also attend an EU-India Business Forum of more than two dozen commercial leaders from both regions. This is a crucial signal, as both sides are reportedly about to conclude the FTA and open a trade market in goods worth over EUR 120 billion in 2024, an increase of 90% over the past decade.

Described as “Mother of all deals”, the FTA would unlock substantial potential. The EU and India combine around a quarter of both, the global GDP and population and are united in the intent to protect a rules-based international order.

This week will be the continuation of a promising start to a pivotal year for the Indo-European partnership, and could be an important global signal in times of increasing protectionism and unilaterally imposed trade barriers.

Sources: Delegation of the European Union to India, DW, Barrons

The SMS group, a global leader in plant construction and mechanical engineering for the metals industry, is significantly expanding its footprint to serve the booming Indian market. The opening of the Sanand facility in Ahmedabad, Gujarat, marks a massive step in the German company's strategy to "Make in India" and signals both the impact and opportunity of India's strong market growth for European businesses.

SMS group's second production site in India is designed for equipment up to 125 tons and full production lines:

The facility brings SMS group closer to its clients in India's rapidly growing steel and non-ferrous metals sectors. This commitment underscores the increasing importance of India as a global manufacturing hub and center for engineering excellence.

India's manufacturing sector is undergoing a massive transformation, driven by infrastructure growth and the "Make in India" initiative. More German "Mittelstand" companies and industrial heavyweights are recognizing that to win in India, they must be deeply integrated into the local ecosystem. For European industrial leaders, India is becoming a critical market for high-tech production and sustainable industrial growth.

Sources: SMS group

Since 2017, the Indo-German Young Leaders Forum hosts its annual conference to promote bilateral exchange. Application for this year’s conference in Berlin (June 25th-28th, 2026) is open until February 8th, 2026.

I had the opportunity to join in New Delhi last year and strongly recommend applying. You’ll be able to meet with a diverse group of leaders, and engage with high-level stakeholders in the Indo-German corridor.

Take a look and apply via this link!

Your random facts and stories about India and the Indo-European friendship.

This week: India-EU Summit

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