Forget China. India ETFs Are Hot Now
India ETFs have garnered significant interest from investors lately, as the country is emerging as a clear beneficiary of China's economic crisis.
Following pandemic-driven supply chain disruptions, many American companies are seeking to reduce their dependence on China. India boasts a large and highly skilled labor force, and the government is eager to attract more foreign investment.
China’s geopolitical tensions with the US and its Western allies have also encouraged large multinationals to explore alternatives to China.
The world’s most valuable company, AAPL, is reportedly planning to increase its manufacturing presence in India to account for approximately 20% of its global iPhone production over the next two years. Nvidia NVDA recently announced partnerships with Indian conglomerates Tata Group and Reliance Industries in the field of artificial intelligence.
India recently successfully hosted the G-20 summit, showcasing the Indian government's efforts to assume a leading role in global affairs as the West aims to counterbalance China's rising influence.
According to the IMF's World Economic Outlook, India remains the world's fastest-growing major economy, with a projected growth rate of 6.1% for this year and 6.3% in 2024. Goldman Sachs predicts that India is poised to become the world’s second-largest economy by 2075; currently, it holds the position of the world’s fifth-largest economy.
However, the world’s most populous country lags behind China by decades in terms of infrastructure development, although the government has been making efforts to increase investments in this area. Substantial work also remains to be done in deregulation and tax reform to establish itself as a prominent manufacturing hub.
To learn more about the iShares MSCI India ETF INDA, WisdomTree India Earnings Fund EPI, iShares MSCI India Small-Cap ETF SMIN and India Internet & Ecommerce ETF INQQ, please watch the short video above.
Apple Inc. (AAPL) : Free Stock Analysis Report
NVIDIA Corporation (NVDA) : Free Stock Analysis Report
WisdomTree India Earnings ETF (EPI): ETF Research Reports
iShares MSCI India ETF (INDA): ETF Research Reports
iShares MSCI India Small-Cap ETF (SMIN): ETF Research Reports
India Internet & Ecommerce ETF (INQQ): ETF Research Reports
