India Has Components for Long-Term, Sustainable Growth | ETF Trends

Things are looking very bright for India. After surpassing the U.K. to become the fifth-largest economy in the world, India is now also the fifth-biggest equity market. And while some believe that this is India’s decade, one consultant believes it’s actually India’s century.

“Many individuals have stated that it is India’s decade. I truly assume it is India’s century once we have a look at a few of the uncooked components right here,” said Bob Sternfels, CEO of McKinsey & Co., in an interview with Economic Times. “India is the longer-term expertise manufacturing unit for the world. By 2047, India would have 20% of the world’s working inhabitants.”

Sternfels added: “India has leapfrogged on the digital scale. All these are the uncooked supplies to do one thing particular for not solely the Indian financial system however probably for the world.”

India’s stock market has held steady this year amid the pandemic and the war in Ukraine. In fact, the relative outperformance has pushed India’s share in the global market cap from a low of 2.05% on May 19, 2020, to an all-time high of 3.5%.

“India is a significant part of our strategies,” Kevin T. Carter, founder, and CIO of EMQQ Global. “That is expected to grow in our upcoming rebalance and for the foreseeable future.”

Carter added that India is also “one of the most exciting pockets in the global equity landscape when you consider the size of the market, the growth in the economy, and the very low penetrations rates. Its tech ecosystem today is where China was ten years ago and where the U.S. was two decades before.”

India is the second-largest exposure in EMQQ Global’s Next Frontier Internet & Ecommerce ETF (FMQQ) and the entire focus of the India Internet and Ecommerce ETF (NYSE Arca: INQQ).

FMQQ is designed to provide investors with exposure to the internet and e-commerce sectors of the developing world. FMQQ seeks to provide investment results that, before fees and expenses, generally correspond to the price and yield performance of the Next Frontier Internet and Ecommerce Index.

Meanwhile, INQQ intends to capitalize on India’s rapidly growing digital and e-commerce sectors. INQQ seeks to provide investment results that, before fees and expenses, generally correspond to the price and yield performance of the India Internet and Ecommerce Index.

“For retail investors looking for a gateway to India, there are a few routes available. Anybody looking for short-term profits may be gambling with the Fed and the global outlook. But for those prepared to wait out any immediate market instability, India offers a bit of economic hope at a time when there is not much around,” according to the FT.

Both funds have an expense ratio of 0.86%.

For more news, information, and strategy, visit our Emerging Markets Channel.