Smartphones to stocks: Why BlackRock's Larry Fink sees India leading the next investing wave

India’s digital payments revolution could become the gateway to mass participation in capital markets, according to BlackRock CEO Larry Fink, who believes the country is uniquely positioned to democratise investing at scale.

“India is entering a new chapter of economic growth. Stock markets have rallied,” Fink wrote in his 2026 annual letter, adding that as Reliance Industries chairman Mukesh Ambani told him, “This is our baby boomer generation—the Indian generation that believes they’ll make a better tomorrow than today.”

“Today, about one billion Indians effectively carry a bank branch in their pocket,” Fink said, highlighting the rapid adoption of smartphone-based financial services.

While these devices are currently used primarily for payments and savings, Fink sees a much larger opportunity. “Those same smartphones can become pathways into the capital markets,” he said, pointing to a structural shift that could redefine how Indians build wealth.

The observation comes at a time when India has seen a surge in retail investing, driven by low-cost brokerage apps, UPI-led financial inclusion, and rising financial literacy. Platforms like Zerodha, Groww, and Upstox have onboarded tens of millions of first-time investors over the past few years, many from smaller towns.

Fink also pointed to BlackRock’s joint venture with Mukesh Ambani's Reliance Group, JioBlackRock, and said that it has onboarded over a million investors within its first year.

“BlackRock’s joint venture with Mukesh Ambani’s Reliance Group—JioBlackRock—is focused on exactly this: helping more Indians become investors. In less than a year, the venture has brought in more than a million investors across the country,” Fink wrote.

Fink’s remarks also align with a broader shift in global asset management, where firms are increasingly targeting retail investors in emerging markets. For firms like BlackRock, this represents a long-term growth opportunity as traditional markets mature.

He frames India not just as a high-growth market, but as a case study in building modern financial systems from scratch. “This is not just a story about a country catching up to the existing financial system. It’s a story about building modern financial infrastructure from the ground up,” he noted.

Fink also pointed to the next phase of financial evolution, tokenisation, which he described as a structural shift in how assets are owned and traded. “Tokenisation, recording ownership on digital ledgers to reduce friction, lower costs, and speed settlement, offers a lesson for the next evolution in market infrastructure,” he said.

“A smartphone wallet you can invest from is already remarkable. But the world of investable options grows much larger as financial assets themselves become digitally native,” he added.

However, the democratisation of access also brings risks. Retail participation tends to be more volatile and investors often lack the experience to navigate market cycles. Regulators in India have already flagged concerns around derivatives trading and speculative behaviour among new investors.

Fink emphasised that the transition to digital and tokenised markets will require strong safeguards. “Tokenisation also needs guardrails like clear buyer protections… strong counterparty-risk standards… and digital-identity verification,” he said, adding that the goal is to ensure investors can participate “with the same confidence they have when swiping a card or wiring money.”