India's Financialization: Retail investor boom shifts corporate focus to short-term gains, hindering innovation - News Summed Up

India's Financialization: Retail investor boom shifts corporate focus to short-term gains, hindering innovation


SynopsisIndia has successfully channeled household savings into financial markets, leading to domestic investors now owning more of listed companies than foreign institutions. This abundant liquidity, however, is nudging companies towards predictable, short-term performance over long-gestation innovation, as evidenced by low R&D spending relative to GDP and a limited private sector role in innovation risk.


Source: Economic Times January 08, 2026 23:13 UTC



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