Abstract            Volume:13  Issue-11  Year-2025         Original Research Articles

Online ISSN : 2347 - 3215 Issues : 12 per year Publisher : Excellent Publishers Email : editorijcret@gmail.com

Algorithmic trading is becoming an important part of the Indian financial market, bringing major changes in the way buying and selling of shares take place. This theoretical review paper explains how algorithmic trading contributes to India’s economic development. It discusses how automated and AI-based trading systems improve market efficiency by increasing liquidity, speeding up transactions, and helping prices adjust more accurately to new information. These improvements support the growth of the Indian economy by making capital markets stronger and more attractive for both local and foreign investors. At the same time, the paper also points out some challenges. Algorithmic trading can increase short-term market volatility, create sudden price movements, and give an advantage to traders with advanced technology. These issues raise concerns about fairness and stability in the financial system. By reviewing existing studies, reports, and regulatory discussions, this paper provides a clear understanding of the benefits and risks of algorithmic trading in India. It concludes that with proper rules, transparency, and equal access to technology, algorithmic trading can play a positive role in strengthening India’s financial markets and supporting long-term economic growth.

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