India’s resilient growth brings opportunities

India just overtook China as the world’s most populous country. The Asian nation has a significant share of the world’s working-age population and is expected to drive one-fifth of global growth this decade. While accounting for more than 15% of the MSCI Emerging Market Index, India’s equity market aims to make big strides.

Thus, “investors can no longer ignore the opportunities that will arise from India’s demographic dividend, rising affluence and unique sector strengths,” says Anand Gupta, Portfolio Manager at Eastspring Investments.

The investment expert believes that global investors need not choose between the China and India equity markets as the different opportunities they offer can have complementary roles in portfolios.

“As India seeks to ride its multiple tailwinds, there are also challenges, such as the country’s high unemployment and sticky inflation. Nevertheless, despite these challenges, the resilience of the market and its growing weight in the MSCI Emerging Markets Index reflect the appeal of India’s structural story,” writes Gupta.

Read more at eastspring.com/lu.