Goldman Sachs GroupThe group believes that the size of the Indian stock market may grow to more than US $5 trillion within three years, surpassing the UK to become the fifth largest stock market in the world.

Indian start-ups have raised $10 billion through IPO so far this year, more than in the past three years combined, the bank said in a report.

Analysts Goldman Sachs Group said that the Indian IPO market is expected to remain strong in the next two years. According to the bank's analysis, as many as 150 private companies could go public in India over the next three years.

"We estimate that the new IPO could add nearly $400 billion to the Indian stock market over the next two to three years," they wrote. "

Goldman Sachs Group expects the total market capitalization of the Indian stock market to rise from the current $3.5 trillion to more than $5,000bn by 2024, surpassing the UK and the Middle East to become the world's fifth-largest stock market.

In recent years, there has been a surge in the number of so-called unicorns (start-ups valued at more than $1 billion) in India. Goldman Sachs Group said this was due to the rapid growth of the Internet ecosystem, coupled with better availability of private capital and a favorable regulatory environment.

The bank estimates that at least 67 private start-ups in India meet the definition of unicorns, with 27 of them saying their valuations reached the $1 billion mark in 2021. Most of these companies focus on India's digital economy.

As these highly valued start-ups list on the public market, Goldman Sachs Group predicts that this could change India's capital markets and stock indices in the coming years.

The bank expects India's share of the global stock market to rise to 3.7 per cent over the next five years from the current 2.8 per cent.