India is set to witness a 'significant' growth in its market capitalisation during the next five years because of combination of a host of factors, including significant growth of equity mutual funds, according to chairman of J M Morgan Stanley Pvt. Ltd Nimesh N Kampani.

"India's current market capitalisation is $220 billion and we will see significant growth in it by 2009 to at least $450 billion at a growth rate of 15.4 per cent as by then Indian economy is likely to be worth $1trillion," Kampani said.

He was speaking at a seminar on 'Capital Market in 2004-2009' organised by Federation of Indian Chambers of Commerce and Industry (eastern regional council).

Kampani's optimism was based on factors like existing low multiple of 13 points in which equities were traded in India and a combination of a host of macro economic factors.