India Gains Momentum: Foreign Investors Choose India Over China

Over the past few years, India has been steadily creeping up to China in almost all level. By positioning itself as a robust and stable economy, India's growth is nothing short of remarkable.

This has made India a compelling alternative to China within the emerging markets landscape. Let's delve deep into the reasons -

Growing Population & Robust Workforce

With nearly 1.5 billion people, India has overtaken China as the world's most populous country. More than 40% of our population is under 25, with a median age of 28, marking a dynamic and sustainable workforce. Real wages are rising at a rapid pace, the highest in the Asia-Pacific region.

Investor Attention

Our attractive earnings, GDP growth, and successful recovery from the COVID-19 pandemic have lured steady investments into Indian equities. The MSCI India Index has consistently outperformed the MSCI China Index since December 2020, suggesting more potential ahead.

Inflows Return

We recorded $18.9 billion in net inflows from foreign equity funds over the last 12 months, in stark contrast to declining inflows in China due to economic challenges and geopolitical tensions.

Growth Engines

India's infrastructure spending, digital transformation, and increased exports are the driving forces behind its growth. The government allocated nearly $2 trillion for infrastructure projects from 2019 to 2025, showing significant progress. The digital economy is thriving, with nearly 900 million internet subscribers.

Export-Driven Economy

India has become an attractive supply source alternative to China, making it less reliant on domestic consumption. India's exports as a percentage of GDP now surpass China's.

India's journey as an investment opportunity is exciting. While the Asset Allocation Committee maintains underweight for emerging markets, India shines as a promising alternative to China, backed by robust foreign investments and dynamic growth drivers.