'India has a solid foundation for long-term market growth'

As the Sensex completes four decades, it offers a look into India’s economic transformation: From a closed economy to one of the world’s fastest-growing large markets, says Sundararaman Ramamurthy, managing director & chief executive officer of BSE Limited. Ramamurthy, in an email interview with Business Standard, reflects on the Sensex’s evolution. Edited excerpts:

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What does the Sensex say about the evolution of India’s economy over the past four decades? ■Sensex charts India’s journey from a closed and developing economy to a dynamic, open economy — the world’s fourth largest. It reflects milestones from early reforms and liberalisation to technology-driven growth, resilience through global crises, and the rise of a diverse, inclusive market. From humble beginnings to 85,000, this arc symbolises India’s shift from scarcity to entrepreneurship, institutional investment and broad-based participation. It also mirrors strong domestic growth, corporate ambition, financial sophistication, and confidence across India and beyond: A testament to a deeper, resilient, and vibrant financial ecosystem powering the nation’s economic transformation and the trust of Indian investors in the capital markets.

What has enabled India and its markets to create long-term wealth?

■India’s capital markets have gained structural strength through a robust, collaboratively designed regulatory framework and progressive government initiatives. Measures such as investor protection, digitalisation, technological innovation, democratisation of savings, transparency, shorter settlement cycles, settlement guarantees, and strong risk management systems have enhanced trust and resilience. Simultaneously, government reforms like financial inclusion, simplified KYC norms, and UPI adoption have expanded access and participation. Together, these developments have created a transparent, efficient and inclusive financial ecosystem that enables long-term wealth creation for millions of investors.