Taiwan overtakes India as world's 5th largest stock market

Taiwan has officially surpassed India to claim the rank of the world's fifth largest stock market by capitalization, a milestone that reflects the outsized weight of Taiwan's semiconductor and technology sector in global equity indices.

The shift is notable given India's rapid market expansion over the past two years, driven by domestic retail participation and a wave of IPOs. Taiwan's ascent above it underscores how concentrated chip-sector valuations — anchored by TSMC — can move national market rankings even as broader emerging-market narratives favor South Asia.

For global allocators, the ranking change has index-weight implications: passive funds tracking MSCI and FTSE emerging-market benchmarks will be watching any rebalancing triggers closely.