India’s stock market edged past the equity market of Germany — Europe’s largest economy — for the first time in seven years, according to data compiled by Bloomberg.
India’s positive returns this year is due to companies’ reliance on domestic demand which enabled them to avoid the meltdown in other emerging markets spurred by Federal Reserve tightening and a trade war between the U.S. and China. It also highlights the challenges facing the EU, including its future relationship with the U.K., a standoff with Italy over budget allocations and separatist clashes in Spain.
Under the conditions mentioned above, investors have become cautious over countries with a heavy dependence on exports. Germany derives more than 38 percent of its GDP from exports, based on 2017 data from World Bank. The corresponding ratio for India is only 11 percent.
India is projected to grow 7.5 percent this year and 7.3 percent in 2019, and Germany’s growth is expected to be 1.6 percent for each year.
Last updated: December 26th, 2025
