Enticing money managers, India’s economy is expected to expand faster than its BRIC – Brazil, Russia, India and China – counterparts. India’s trade imbalances are also diminishing and the country’s currency and stocks have held up, or at least haven’t sold off as rapidly.
“The really big flows into India ETFs started in March of last year, when it began to look like the pro-business Narendra Modi would be elected prime minister. He won in May. The election helped large-cap India ETFs generate two-year returns of 20 percent. That outpaced returns for other big emerging-market countries such as Brazil, Russia, and China by more than 15 percentage points,” according to Bloomberg.
The international Monetary Fund projects India’s economy to expand 7.5% in the year ending March 31, 2016, outpacing China’s growth for the first time in over a decade. In comparison, China’s economy is expected to grow 6.8% this calendar year while Brazil and Russia could contract 1.5% and 3.4%, respectively.
PowerShares India Portfolio
