India Emerges & Outshining China

Tanushree Jaiswal Tanushree Jaiswal

Last Updated: 13th July 2023 - 10:45 am

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Here are some interesting facts:

1.    In a recent report by Invesco titled 'Invesco Global Sovereign Asset Management Study,' India has surpassed China as the most attractive emerging market for investing in debt.

2.    The report gathered opinions from 85 sovereign wealth funds& 57 central banks, representing an astounding $21 trillion in assets.

3.    India's improved business& political stability, favorable demographics, proactive regulation, & investor-friendly environment have contributed to its rise as a top investment destination.

4.    Sovereign investors highlight India's positive attributes, including its fast-growing population, interesting companies, robust regulatory initiatives, & a welcoming climate for sovereign investments.

5.    Mexico & Brazil, along with India, are benefiting from increased foreign corporate investment through "friend-shoring" & "near-shoring," supporting their domestic assets & currencies while funding current account deficits.

6.    The shifting investment landscape is driven by expectations of peaking inflation& a transition from tightening to easing monetary policies in emerging markets like Brazil.

7.    Brazil & Indonesia, recognized as important commodity countries, are well-positioned for the green transition& the electric vehicle revolution, offering potential diversification for sovereigns with concentrated commodity revenue streams.

8.    Sovereign wealth funds favour fixed income& private debt, leading them to choose emerging markets with solid demographics, political stability, & proactive regulation, with India standing out as a prime investment destination.

9.    The report also reveals concerns among central banks, with an increasing preference for gold as an investment & a higher percentage of reserves being kept at home.

India's remarkable ascent in the investment world, surpassing China as the most attractive emerging market for debt investment, has captivated the attention of sovereign wealth funds & central banks. The nation's improved business& political stability, coupled with favourable demographics & proactive regulation, have instilled confidence in investors.

In conclusion, India's ascent as the most attractive emerging market for debt investment, surpassing China, signifies its remarkable progress in terms of business & political stability, favourable demographics, regulatory initiatives, & a welcoming environment for sovereign investors. This shift in the investment landscape opens new doors for India, inviting a future brimming with untapped potential.

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