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June 23, 2023

India - a gem amongst Emerging Markets?

The team at Stewart Investors explain why they are optimistic about India as an attractive investment opportunity.

India - a gem amongst Emerging Markets?

Emerging Markets (EMs) refer to countries that are at an earlier stage of economic development but often with the potential to grow rapidly. China is currently the largest constituent of the MSCI Emerging Markets Index (accounting for 29% compared to 14% for India1) but some investors are put off by its poor record on human rights.2

Strong growth drivers mean India could overtake Germany and Japan to become the world’s third largest economy by the end of this decade.3  Government policies have encouraged investment in manufacturing and digital infrastructure, whilst favourable demographic trends, including a young population and expanding middle class, should provide a boost to consumer spending.  

One firm that holds a positive view about the prospects for India is Stewart Investors who have significant exposure to the country in their Asian and Emerging Markets Funds that are available on The Big Exchange. For investors seeking a single country strategy, they also offer Stewart Investors Indian Subcontinent Sustainability Fund.  

The team have written an article in which they explain their reasons for optimism about India as an attractive investment opportunity. Read more here.

Stewart Investors has a well-established approach to sustainable investing which incorporates a holistic view of how companies behave and the quality of their business practices rather than focusing only on solutions. This is particularly important when considering Emerging Markets where governance and regulatory standards may not be as rigorous as those in Developed Markets. You can find out more about their approach here.

1 MSCI Emerging Markets Index Factsheet *(Data cited in the introduction above accurate as of 31 May 2023.)

2 The Diplomat, How Is China Doing on ESG Goals?

3 CNBC, India may become the third largest economy by 2030

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