India Is the Most Promising Emerging Market
September 12, 2024
Read Time 1 MIN
India’s transformational reforms, digitization and favorable demographics are propelling the country’s growth, and its equity market is one of the highest performing markets of the past decade. According to the International Monetary Fund (IMF), India is on track to become the third-largest country by GDP within the next five years. Such significant economic growth is not just a reflection of the country’s vast population but is indicative of its robust economic activities, rising consumer base, and the entrepreneurial spirit that thrives within its borders.
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However, India’s growth story comes with nuances. Its equity market is often perceived as expensive compared to other emerging markets like China, but this valuation reflects strong economic reforms, a vibrant digital economy and lower risk profile. For investors, the key lies in understanding these dynamics and strategically navigating India's diverse investment landscape to capitalize on its long-term growth potential. In a recent Forward Guidance podcast, Angus Shillington explores this opportunity in detail and addresses common misconceptions about India.
Key takeaways from the podcast include:
- Economic transformation: Robust reforms, rapid digitization and heavy infrastructure investment are driving increased productivity, reduced costs and greater efficiency, boosting its appeal to investors.
- Sector opportunities in India: Growth in sectors like digital infrastructure, consumer finance, logistics, and industrials is driven by companies leveraging digital platforms and an expanding middle class.
- Challenges and market perception: Although Indian equities are seen as expensive relative to other emerging markets, valuations need to be viewed in the context of their growth prospects, quality and lower risk profile.
Forward Guidance: India Is The Most Promising Emerging Market
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Please note that VanEck may offer investment products that invest in the asset class(es) or industries included in this blog.
This is not an offer to buy or sell, or a recommendation to buy or sell any of the securities, financial instruments or digital assets mentioned herein. The information presented does not involve the rendering of personalized investment, financial, legal, tax advice, or any call to action. Certain statements contained herein may constitute projections, forecasts and other forward-looking statements, which do not reflect actual results, are for illustrative purposes only, are valid as of the date of this communication, and are subject to change without notice. Actual future performance of any assets or industries mentioned are unknown. Information provided by third party sources are believed to be reliable and have not been independently verified for accuracy or completeness and cannot be guaranteed. VanEck does not guarantee the accuracy of third party data. The information herein represents the opinion of the author(s), but not necessarily those of VanEck or its other employees.
Emerging Market securities are subject to greater risks than U.S. domestic investments. These additional risks may include exchange rate fluctuations and exchange controls; less publicly available information; more volatile or less liquid securities markets; and the possibility of arbitrary action by foreign governments, or political, economic or social instability.
All investing is subject to risk, including the possible loss of the money you invest. As with any investment strategy, there is no guarantee that investment objectives will be met and investors may lose money. Diversification does not ensure a profit or protect against a loss in a declining market. Past performance is no guarantee of future performance.
© Van Eck Associates Corporation.
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IMPORTANT DISCLOSURES
Please note that VanEck may offer investment products that invest in the asset class(es) or industries included in this blog.
This is not an offer to buy or sell, or a recommendation to buy or sell any of the securities, financial instruments or digital assets mentioned herein. The information presented does not involve the rendering of personalized investment, financial, legal, tax advice, or any call to action. Certain statements contained herein may constitute projections, forecasts and other forward-looking statements, which do not reflect actual results, are for illustrative purposes only, are valid as of the date of this communication, and are subject to change without notice. Actual future performance of any assets or industries mentioned are unknown. Information provided by third party sources are believed to be reliable and have not been independently verified for accuracy or completeness and cannot be guaranteed. VanEck does not guarantee the accuracy of third party data. The information herein represents the opinion of the author(s), but not necessarily those of VanEck or its other employees.
Emerging Market securities are subject to greater risks than U.S. domestic investments. These additional risks may include exchange rate fluctuations and exchange controls; less publicly available information; more volatile or less liquid securities markets; and the possibility of arbitrary action by foreign governments, or political, economic or social instability.
All investing is subject to risk, including the possible loss of the money you invest. As with any investment strategy, there is no guarantee that investment objectives will be met and investors may lose money. Diversification does not ensure a profit or protect against a loss in a declining market. Past performance is no guarantee of future performance.
© Van Eck Associates Corporation.