A Guide to Investing in Indian Stock Markets
In his excellent book, The Growth Map, Lord O’Neill, formerly chief economist of Goldman Sachs, wrote that ‘India could overtake Japan in the next 20-30 years to become the third largest economy in the world’. Some commentators even compare India to China. They explore whether India will grow faster than China and in the coming decades become the largest economy on Earth. It may be hard to imagine a former ‘third world’ country becoming a major economic powerhouse, but many historians will tell you that until the industrial revolution India together with China may have accounted for over 50% of global GDP. So perhaps it will merely be a case of history repeating itself (or back to the future, depending on which way you look at it).
In any event, if economic forecasts are accurate India may well offer many exciting opportunities for investors, particularly those hunting for dynamic growth stocks. So in this article I’ll explore India’s investment case and explain how UK investors might be able to take their first steps.
Why invest in Indian stocks?
Emerging MarketJim O’Neill outlined several factors that may drive India’s continued economic rise, the first factor being...