In a world rife with macroeconomic uncertainty, emerging markets have come under pressure. Yet one country is bucking the trend. India’s prospects look particularly strong, with the country’s economy hovering close to its pre-pandemic path despite a challenging global environment.
The World Bank predicts India could be the world’s third largest economy by the end of the decade, with its GDP expected to surpass $5trn by 2026. India is also now the world’s most populous country, presenting opportunities for investors. So, why has India become the poster child of emerging market growth?
Structural and banking sector reforms
India’s resilient economic growth has been helped by structural reforms introduced by policymakers. Measures include efforts to improve the regulatory environment and transition to a digitalised governance model. Aadhar, India’s biometric ID system and the world’s largest, has been a great success. It has captured the identities of more than 94% of India’s population and slashed the cost of identity theft.
Fidelity Emerging Markets Limited (LON:FEML) is an investment trust that aims to achieve long-term capital growth from an actively managed portfolio made up primarily of securities and financial instruments providing exposure to emerging markets companies, both listed and unlisted.
