Maharashtra requires paperwork from those switching faiths before worship

A legal challenge or legislative reversal of the conversion law would likely have minimal direct market impact, though it could modestly ease geopolitical friction between India and Western trading partners concerned with religious freedom.

If the law remains in place and enforcement continues at current levels without major escalation or reversal, financial markets would likely treat this as a localized regulatory matter with negligible systemic impact on Indian equities or broader sentiment.

Escalation—such as aggressive enforcement, broader application across states, or international sanctions pressure—could create headwinds for India-focused funds and sectors sensitive to geopolitical risk, particularly those with Western institutional exposure.