India has recently surpassed China to become the fastest-growing economy in the world. Prime Minister Modi’s new reforms are countering years of anti-capitalist regulations of previous heads of state. We believe that India has the potential to be among the strongest economies over the long-term. Wise investors look to history and India’s glorious history points to a bright future under the current progressive regime. 40% of the world’s population lives in either China (1.35 billion) or India (1.25 billion) and the latter’s population growth is surging faster than China’s.
Indian entrepreneurs have developed a thriving IT and Services sector and therefore has created a more diversified economy than China. A further advantage over China is India’s widespread English speaking population. Since taking power two years ago, the pro-business friendly Modi has pursued progressive reforms and has made a dent in established bureaucratic problems. The ‘Make in India’ campaign has garnered $450 billion+ in foreign manufacturing investment. Both the energy and railroad sectors have attracted huge investment under foreign expertise and strategic investments have recently been announced for India’s poorest rural areas.
India like any developing market faces various hurdles. The threat of radical Islam, the intense rivalry with her neighbor Pakistan and the risk of that escalating along with the existence of extremist politics within the governing party, India’s National Congress and the Indian Communist Party. A number of assassinations of prominent intellectuals point to free speech concerns within the country.
The above negative issues concerning India do not stop us from doubting India’s long-term potential. We believe in having an internationally diversified portfolio and India features prominently on our list. We purchased iShares MSCI India (INDY) on 22 February 2016 and have enjoyed a 20% growth since entry. Here’s a link to our portfolio: https://wordpress.com/page/theimpartiallens.com/114
For those of you interested in joining in India’s rise, current charts suggest a positive entry time into aforementioned India play INDA as both the short-term and intermediate-term charts are in confirmed uptrends according to our metrics. For any questions related to our portfolio, see our contacts page of this site.