Capital market development involves the creation of necessary conditions for the effective operation of capital markets. It includes the establishment of financial institutions, regulatory bodies, and legal frameworks that facilitate the functioning of the markets.

The development of capital markets is crucial for economic growth as it provides a platform for businesses to raise long-term funds. It also offers investment opportunities for individuals and institutions, thereby promoting savings and investments.

The development of capital markets is a complex process that requires the involvement of various stakeholders, including the government, regulatory bodies, financial institutions, and the public. It is a long-term process that requires careful planning and execution.