India and the focused exchange traded note (ETN), have potential for emerging growth over the next few decades. The country is growing at a fast rate, second only to China, and is in need of infrastructure to sustain this growth. India’s third-quarter GDP was 8.9% and the country is targeting 9% growth for each of the next five years.
Brian Powers for Seeking Alpha reports that India has not pegged its currency, to the U.S. dollar and has let its currency appreciate. This helps inflation on imported commodities, but can hurt exports. India is driven more by internal demand than exports.
The World Economic Forum report includes risk factors for India:
- Economic impact for demographics
- Loss of freshwater
- Economic shocks and oil peaks
- Globalization vs. Protectionism
- Climate change
- Infectious diseases
- Emerging risks
One way to add India to your portfolio is through iPath MSCI India Index ETN (INP), which is up 98.3% year-to-date. Make sure your risk tolerance and financial goals are in line with adding INP to your portfolio.
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.