Archive · 8 Dec 2025
India's New Wealth-Creation Cycle Driven by Entrepreneurship
India is entering a new phase where making money through investing is changing.
Experts say that simply putting money in any stock won't work anymore.
Instead, investors need to carefully choose companies that are growing and have strong earnings.
This new phase is also being driven by a lot of new entrepreneurs, especially from smaller cities.
These entrepreneurs are starting successful businesses and attracting investment from venture capital and private equity firms.
Domestic investors are also playing a bigger role, with more people opening investment accounts and putting their money into the market.
The experts believe that the next big opportunities for making money will come from identifying the right sectors and backing the right entrepreneurs.
They also advise people to focus on long-term investing rather than just saving money in banks, as equity investments have historically provided better returns.
India's new wealth-creation cycle is driven by disciplined investing and a surge in entrepreneurship, especially in Tier-2 and Tier-3 cities.
Experts emphasize the end of 'lazy investing'; investors must now focus on earnings-backed growth and selective, research-driven investing.
The rise of world-class entrepreneurs in smaller cities is a significant driver of the next wealth-creation cycle.
A thriving venture and private equity ecosystem is fueling the growth of new-age companies, many from small towns.
Deepening domestic investor participation, with SIPs at ₹20,000 crore a month, is contributing to market depth and confidence.
- Who
- Market veterans Madhu Kela, Navneet Munot, and Nilesh Shah
- What
- India's new wealth-creation cycle driven by disciplined investing and entrepreneurship
- When
- Current phase and future outlook
- Where
- India, with a focus on Tier-2 and Tier-3 cities
- Why
- Shift from liquidity-driven rallies to earnings-backed growth and entrepreneurial energy
- Key Drivers
- Disciplined investing, entrepreneurship, venture capital, private equity, domestic investor participation
- Market Shift
- End of 'lazy investing'; focus on earnings-backed growth
- Entrepreneurial Growth
- Rise of world-class entrepreneurs in smaller cities
- Investor Participation
- Deepening domestic investor participation with SIPs at ₹20,000 crore a month
- Market Confidence
- Domestic flows now dominate; reduced reliance on foreign flows
- Investment Returns
- Equity reinvested with dividends has given 14.5% CAGR over 26 years
- Future Opportunities
- Potential for significant wealth creation in emerging sectors and smaller cities
- Investor Advice
- Focus on selective, research-driven investing and long-term financial security