Abstract

The capital market in India plays a pivotal role in mobilizing savings allocating resources and facilitating investment thereby influencing overall economic growth. This research investigates the relationship between the Indian capital market and essential economic factors including GDP growth inflation interest rates foreign direct investment (FDI) and industrial output. By analyzing historical data market indices and economic indicators the study evaluates how capital market performance reflects and impacts the broader economy. The research employs econometric models correlation analysis and time-series data to identify patterns causality and interdependencies. Findings indicate that the Indian capital market is significantly influenced by macroeconomic factors and in turn affects capital formation investment flows and industrial development. The study provides insights into policy implications investor strategies and economic planning highlighting the interconnectedness of financial