​Why Indian Equities???

29 September 2017

Why Indian Equities???

When it comes to emerging markets, India has been the biggest overall disappointment. Bogged down by it’s intense bureaucratic red-tape and inefficiencies, India has not exactly lived up to its potential, despite having all the hallmarks of an amazing investment, such as a huge growing middle class and consumer class.

That is until this year.

The election of the new business friendly Prime Minister, Narendra Modi, has been a game changer. Indian equities have surged by 26% this year making them one of the best-performing stock markets around. More gains could also be in store for longer-minded investors as the new India finally begins to take shape.

Prime Minister Modi has pledged to run on a platform of boosting infrastructure spending, job growth and ending stubbornly high inflation as well as curbing corruption. So far, he is delivering on his promises. Recent reforms include allowing foreign investors to participate in financing India’s critical railways and other infrastructure, like power and water.

Last week, Japan’s Prime Minister Shinzo Abe travelled to India to lay the first stone in a Japanese financed $17bn bullet train set to cover 310 miles between Mumbai and the industrial city of Ahmedabad, cutting the journey from eight hours to three hours.

Since the new Prime Minister took office, India’s GDP has surged by 5.7% which is the fastest pace that the Indian economy has grown since late 2011/early 2012.

With India firing on all cylinders at last, it can finally deliver on it’s long term promise by capitalizing on it’s large and young workforce, rising consumer wealth and strong domestic economy. Add to this a wealth of high tech exports, as well as various commodities and you have a real recipe for success.

If you would like to discuss this further, you should contact an Independent Financial Advisor, who can access various fund options where you can take advantage of the positive outlook for the Indian economy.


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