Emerging Global Shares
has launched an exchange traded fund (
) that taps into
's infrastructure sector. And according to Richard Kang, Emerging
Global's director of research, there's tremendous opportunity for
EGShares India Infrastructure ETF (NYSEArca: New Ways to
Play India's Boom.]
Kang was recently in India and witnessed its infrastructure
troubles first-hand. "I can say clearly that India is not even
where Korea was 30 years ago," he says, pointing out that Mumbai
doesn't have a subway system or lightrail. India is also home to
the largest slum in Asia; it's home to one million people.
"How do you get all these people out of that situation and into
the middle class?" Kang asks.
That's the opportunity in India
. The country has a five year plan to spend $1.025 trillion on
infrastructure between 2012-2017 to build things like power plants
to shipping ports to airports.
While that's a start, Kang says, it's not nearly enough for
India's massive population. Much of the rest of the money needed to
up to speed will likely come from private investments and sovereign
India still has a lot going to for it: it's a well-educated,
English-speaking population and the economy is driven by domestic
demand, which has helped insulate it from many of the troubles of
the last year.
"They weathered the storms well. That can turn into greater
investment into infrastructure," says Kang. [
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Tisha Guerrero contributed to this category.