Currently, India is a poor country; 95% of people must work hard. The 5-7% who are rich, including shareholders and family offices, drive the wealth effect. In the US, 55-60% participate in the markets, so the US economy runs on the wealth effect. For example, in the US, when the Dow or NASDAQ rises 15-20% on $70 trillion, about $7–8 trillion is created, and 10% of that is spent, which results in contributing to GDP growth.
