“India is a long-term story supported by structural factors, domestic demand, and stable policymaking that should offer opportunities in 2024 and beyond.”
- The Indian story is gaining momentum as the country’s equity market is heading towards a strong performance in H2 2023.
- We expect a robust economic growth outlook for India, led in particular by investments.
- In general, the EM world is expected to grow at a higher pace compared to DM, but divergences in the former would remain.
Indian stocks seem on track to outperform the US, EM and world equity indexes in H2. In the first week of December, the country’s market capitalisation crossed $4tr for the first time ever, making it the 5th largest country by market capitalisation after US, China, Japan and Hong Kong. Optimism has been boosted by political stability, with markets giving thumbs up to growth focused policies of the government, after the ruling BJP party won key state elections. The recent upward revision to Q3 GDP growth to 7.6% (YoY) contributed also to the positive momentum, making India one of the fastest growing economy in the EM universe. India is just one example of EM opportunity arising from a more fragmented world with ongoing supply chain relocation.
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