India Falls Behind Taiwan in Global Stock Market Rankings

Taiwan has moved ahead of India in terms of total stock market value, highlighting the growing global influence of artificial intelligence (AI) and semiconductor companies. The surge in Taiwan’s market capitalization has largely been driven by the outstanding performance of Taiwan Semiconductor Manufacturing Company (TSMC), the world’s biggest chipmaker and a key supplier for AI technology. According to recent market data, Taiwan’s total stock market capitalization has climbed to nearly $4.95 trillion (around ₹415 lakh crore), while India’s market value has slipped slightly to about $4.92 trillion (approximately ₹413 lakh crore). With this achievement, Taiwan has secured a place among the world’s top five stock markets, following the United States, China, Japan, and Hong Kong. The biggest contributor to Taiwan’s rapid rise is TSMC, which holds a dominant position in the country’s benchmark stock index. The company alone accounts for nearly 42% of the index’s weight. Fueled by the global AI revolution and increasing demand for advanced semiconductors, TSMC shares have surged nearly 49% this year. As companies worldwide invest heavily in AI infrastructure, demand for high-end chips has skyrocketed, directly benefiting Taiwan’s economy and stock market. Taiwan also received support from recent regulatory reforms. The country’s financial regulators relaxed investment rules, allowing domestic funds to invest up to 25% of their assets in a single large-cap company, compared to the previous 10% limit. Currently, TSMC is the primary company eligible under these revised rules. Analysts believe this policy change could attract nearly $6 billion (around ₹50,000 crore) in additional investments into Taiwan’s markets. Meanwhile, the Indian stock market has faced several challenges this year. Foreign investors have reportedly withdrawn around $24 billion (approximately ₹2 lakh crore) from Indian equities. Experts say high stock valuations, a weakening rupee, and concerns over slowing earnings growth have reduced investor confidence. Another major factor affecting India’s position is the absence of large global AI hardware and semiconductor companies. While markets such as Taiwan and South Korea are benefiting from AI-related manufacturing growth, India currently lacks major companies directly linked to global AI infrastructure production. Additionally, rising energy prices and inflation concerns have created pressure on India’s economic outlook. Slower corporate profit growth has further weakened market momentum, making investors more cautious. Although India remains one of the world’s largest and fastest-growing economies, Taiwan’s dominance in the AI chip industry has given it a significant edge in global market valuation. The development also highlights how AI-driven industries are increasingly shaping the future of global financial markets.