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.]