Investment returns in the subcontinent have been Index returns since 31 December 1992 primarily driven by India since she liberalised her economy in 1991.
Investment into one of the earlier Indian indices would have yielded compounded returns of approximately 9% in USD from December 1992 to date. This compares very favourably with other global and emerging market indices over the same period.
Liberalisation and reform fires growth
1991 was an important year for India as the balance of payments crisis led to the liberalisation of the economy, setting her on an irreversible developmental path. Economic growth averaged roughly 4% in the three decades prior to 1991, and approximately 6% in the three decades following. There is consensus cutting across political lines on the benefits of the 1991 liberalisation and the reforms adopted since. There is also broad agreement on the sustainable development challenges that need to be addressed for the next generation. Successive governments might differ slightly on how they approach these challenges but the direction of travel remains the same. Such continuity makes the region quite predictable. The region is home to roughly 20-25% of the world’s population.
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