India ETFs: The World’s Next Superpower?
March 2nd, 2010 at 2:00pm by Tom Lydon
India’s exchange traded funds (ETFs) may be the hot talk of the future. The world’s second most populous country is not only reaping the rewards of its rapidly expanding economy, but it could very well be on track to upstage the United States – and sooner than you might think.
India is expected to dethrone the United States as the world’s economic superpower by 2025 with an expected annual growth rate of 14% beginning in 2014. This is in part because of India’s persistent growth in the manufacturing sector, which has been able to offset the nation’s decline in agricultural output, says Issac John for Khaleej Times Online. [Why the IMF is Bullish on India's ETFs]
While the numbers portend a more than successful future for India’s economy, it is important to note that many kinks within the country need to be worked out. India’s largest issue is an atrocious infrastructure, which the country’s government has seemed dedicated to resolving. Despite the fact that the government has dedicated $8.7 billion for infrastructure development, HP Ranina, a leading taxation expert, feels that financing is not the issue, rather it is actually getting projects off the ground.
Investors should take into account more than merely recent data of India’s economy when considering Indian ETFs and look at the bigger picture. To spot opportunities, a simple strategy we suggest is watching the trend lines. [How to Follow Trends.]
The ETFs below are sitting right at their trend lines (INDY hasn’t yet been around long enough to establish a line, however). By watching for when areas that interest you move above their 200-day moving averages, you give yourself the opportunity to take positions in time to enjoy any potential long-term uptrends. [6 Reasons to Watch India's ETFs.]
For more stories about India, visit our India category.
- iShares S&P India Nifty 50 (NASDAQ: INDY)
- WisdomTree India Earnings Fund (NYAR: EPI)
- PowerShares India Portfolio (NYSEArca: PIN)
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.