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In the long term, India is undoubtedly a growth market

1 month ago
thedialog
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Picture Source: Abodestock.com 

Introduction : India, with 1.4 billion inhabitants, became the most populous country in the world and overtook China last year. The growth dynamic has accelerated; the stock market is also exciting. The article explains what investors should consider when investing in the Indian stock exchange. Article by Dr. Ulrich Stephan, Chief Investment Strategist for Retail and Business Customers at Deutsche Bank.

Article : India’s stock market is characterized by financial assets, as is the case in many developing and emerging countries. “However, there are also some large technology companies in India,” says the expert. “And there are huge conglomerates that are active in different sectors.” There is a real entrepreneurial spirit that he was able to experience at a conference.

Growing fund offering

However, it is above all the financial values on the stock exchange, such as the ICICI Bank and HDFC Bank. In addition to Reliance Industries and Tata Group, technology values such as Infosys Technologies are also among the biggest values. Investors not only have the opportunity to invest through individual stocks and actively managed equity funds. The range of exchange-traded index funds is also growing steadily. India is usually relatively weighted in funds and ETFs investing in the stocks from the emerging crowned countries. The MSCI (Morgan Stanley Capital International)Emerging Markets Index is 17 percent.

India has been at the top of the G20 countries since 2015 when it comes to growth rates. Apart from the corona year 2020, they were an average of seven to eight percent. Last year, India even contributed 16 percent to global growth.

The population continues to grow and it is very young. “Of course, private consumption is an important issue,” says Stephan. The country is also innovative, invests, government spending is relatively high in the election year and inflation has decreased significantly.

With inflation of around 4.5 to 5 percent and real growth rates of 6.7 percent,  showing nominal growth in the double-digit range – this is something noteworthy.  Many economists assume that India will overtake Japan and Germany by 2030 and be the third largest economy in the world. The per capita income could also double.

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