The Indian economy is weaker, growing 5% in the year ended March 31, its slowest pace in a decade. That is one of the known, obvious problems facing the Indian economy. However, the widening account deficit, exacerbated by the sliding rupee and a government some observers view as impotent in fighting the currency’s slump, serve to elevate the risk associated with Indian stocks.
Last week, Fitch Ratings said India is not at immediate risk of a credit downgrade, but the ratings agency cautioned it could act if the country does not move to assuage skittish financial markets. Fitch currently rates India BBB-, the lowest investment grade.
WisdomTree India Earnings ETF
ETF Trends editorial team contributed to this post.