India’s financial markets are witnessing a silent but powerful transformation—the rise of women investors. The number of women opening demat accounts is growing rapidly across the country, particularly in non-traditional states like Madhya Pradesh, Rajasthan, Odisha, and Assam. This shift is not just about numbers; it represents a cultural and economic evolution that’s reshaping India's investment landscape.

Impressive Growth in Demat Accounts Among Women

Between 2021 and 2024, demat account additions by women have surged by 315%, compared to a 333% rise in accounts by men. While men still outpace women at the national level, 28 out of 36 Indian states and union territories have seen a faster growth rate of demat accounts among women, highlighting a widespread trend of increasing financial inclusion.

Among these, Madhya Pradesh stands out—women demat holders increased by 552%, compared to 507% growth among men in the state. Similarly, Odisha, Assam, and Rajasthan have reported sharp increases in women joining the investing fold.

State-wise Analysis: Maharashtra Still Dominates, But UP Surges

According to the Women and Men in India 2024 report by the Ministry of Statistics, Maharashtra continues to hold the top spot in terms of total demat accounts, contributing over 20% to India’s total. However, Uttar Pradesh has shown remarkable growth, overtaking Gujarat to become the second-largest contributor to new demat accounts in India.

• Maharashtra added 1.8 crore demat accounts between 2021 and 2024.

• Uttar Pradesh followed with 1.5 crore new accounts.

• Gujarat and Rajasthan each added around 80 lakh accounts.

• Madhya Pradesh added 70 lakh, showing massive growth.

This clearly shows a broad-based expansion of investor participation, no longer limited to traditional urban or industrial states.

Shifting Trends Among Women Demat Holders

Uttar Pradesh now accounts for 9.8% of women demat account holders, up from 6.2% in 2021. Gujarat, in contrast, dropped from 14.7% in 2021 to 8.9% in 2024, indicating a redistribution in regional investor bases.

The top five states for women demat holders in 2024 are:

1. Maharashtra

2. Uttar Pradesh

3. Karnataka – 5.8%

4. Rajasthan – 5.5%

5. Madhya Pradesh – 5.3%

In 2021, Madhya Pradesh was placed 12th, but now ranks 6th, highlighting the state’s rapid rise in financial participation among women.

Small States, Big Impact: Assam and Bihar’s Remarkable Progress

Though smaller in size, Assam has matched Bihar’s contribution, with both states contributing 3.2% of India’s women demat holders. This is particularly noteworthy because Assam is a third the size of Bihar, emphasizing the strong investor awareness and adoption in the North-East.

Bihar, previously ranked 16th, has climbed to 12th in 2024, showcasing the rising financial literacy and ease of access even in economically weaker states.

The Gender Gap Remains But Narrows in Some Regions

Despite all these advancements, only 1 in 4 demat account holders in India are women. This underscores the persistent gender gap in investing. However, some regions, particularly in the North-East, are faring better in closing this gap.

In Assam, the gender ratio is 1:3, which is significantly better than the ratios in most northern and eastern Indian states.

This means that while there's still a long road ahead, some states have made notable progress in improving financial inclusion for women.

Why Women Are Entering the Stock Market Now

Several factors have contributed to this shift:

• Improved digital access through mobile apps and platforms.

• Simplified account opening processes, including Aadhaar-based KYC.

• Increased financial awareness and education campaigns led by SEBI and AMFI.

• The impact of COVID-19, which gave rise to work-from-home setups, more time at home, and rising awareness about saving and investing for the future.

• Attractive returns in equities post-2020, especially for those investing in SIPs and large-cap stocks.

These factors have led many women to explore stock markets as a viable option for wealth creation.

Changing Demographics of Indian Investors

India has added nearly 11 crore demat accounts in the past three years, and the composition of this investor base is undergoing a major transformation. With women’s participation rising and newer states taking the lead, the Indian equity market is becoming more representative, diverse, and inclusive.

This also sets the stage for more tailored financial products, advisory services, and digital investment tools targeted at women.

Policy Push and Way Ahead

Policymakers and financial institutions have played a vital role in this shift by promoting financial literacy programs, offering discounted brokerage for women, and pushing fintech solutions that cater to first-time investors.

However, to bridge the remaining gap, there's still a need for:

• More regional language content for financial education.

• Community-level programs that encourage women to participate.

• Simplified platforms with goal-based investment approaches.

• Flexible investment products that align with women's financial goals and responsibilities.

Conclusion: Women Are Reshaping India’s Investment Landscape

The increasing participation of women in India’s financial markets is not just a trend—it’s a transformation. States like Madhya Pradesh, Assam, and Odisha are leading the way, while Uttar Pradesh and Bihar are closing in on traditional financial hubs.

While the gender gap still exists, the signs are clear: more women are investing, more states are enabling them, and India’s stock market is becoming more inclusive than ever before.

This surge offers a huge opportunity for policymakers, brokerages, and fintech platforms to tap into this emerging segment, and for India as a whole to move towards a financially empowered future.

The Upcoming IPOs in this week and coming weeks are Aten Papers & Foam.

The Closed IPOs are  Infonative Solutions Limited, Spinaroo Commercial Limited,Retaggio Industries Limited.

Start your Stock Market Journey and Apply in IPO by Opening Free Demat Account in .Choice Broking FinX