U.S. Investors Take A Leap Of Faith In Indian Economy

BANGALORE: India is the fastest growing market in the world, whether it’s the e-commerce sector or the tech-services. The U.S. investors are taking the scenario very seriously and that is the reason, India’s exchange traded funds (ETF) is getting loaded with more and more money.

Taking a look upon the net asset gain this year from the U.S.-listed investors in the Indian ETFs are swanking $2 billion. This is the largest single-country net asset gain compared to the other U.S. listed ETFs that focus on Brazil, China, South Africa and Russia.

The soul reason for excelling that high may be the talent and skill developed in India but from the present scenario it can be seen the driving force for the U.S. or any other investors is Prime Minister Narendra Modi. Analysts and investors expect Modi's push for economic reform to revitalize earnings and create jobs. The impact can be proven by looking at the MSCI India Index up 28.5 percent year-to-date, which is the highest in more than two decades, surely it is driving investor’s appetite in India.

This is probably the biggest drift from 2012, when HSBC Holdings PLC called India a "gasping elephant" in a report highlighting the country's poor economic growth. The Organization for Economic Cooperation and Development last week revised its growth forecast for India, to 6.6 percent from an earlier forecast of 5.7 percent.

According to David Garff of Accuvest Global Advisors, California, “It's one of the few places in the world where people can find growth opportunities, so they're willing to pay up for them right now,” reports The Business Line.

Among the biggest Indian ETFs so far, the WisdomTree India Earnings ETF is up about 35 percent year-to-date adding up to $830 million in assets, while the iShares MSCI India ETF is up 31 percent year-to-date with $875 million, and the PowerShares India ETF is up 29 percent and added about $94 million to its name.

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