India’s economy has made such strides this year that it may be the first to begin scaling back its stimulus measures. These definitive signs of recovery in the emerging nation could continue to spill over into the strong performance of its exchange traded funds (ETFs).

The Indian government hinted at winding up fiscal stimulus initiatives and cutting back on loose monetary policies, writes Arun Prabhudesai for Demand has been on the rebound and the benchmark inflation index has also risen. (Why India is moving up).

Prime Minister Manmohan Singh believes that stimulus efforts will be eased because of very clear signs of recovery in the Indian economy. The Royal Bank of India governor has also opined it appropriate for the Central Bank to incrementally reduce the monetary stimulus.

India’s entrepreneurial momentum is continuing to grow, with a large, under-30 populace that is low on experience but eager to take risks, comments Sramana Mitra for Forbes. For instance, Sridhar Vembu, CEO of Zoho, built a $60 million company that has become competitive in the worldwide arena and he did it with no outside financing. (Possible India small-cap ETF).

For more information on India, visit our India category.

  • PowerShares India (NYSEArca: PIN): up 73.6% year-to-date

  • WisdomTree India Earnings (NYSEArca: EPI): up 90.4% year-to-date

Max Chen contributed to this article.

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.