Thanks to its young population, friendly relations with the US, and rapid urbanisation, India is sometimes seen as an alternative investment destination to China. And with India continuing to outperform its emerging markets peers, many investors are taking a closer look at the world’s most populous nation.
In this partner series, we spoke with Tejas Sheth, the equity research lead for Nippon Life India Asset Management, to learn more.
Why has India outperformed emerging markets?
We started our discussion asking Tejas why India’s share market has outperformed in recent years.
There were four main reasons, he said. First is pent up demand. Roughly 60% of India’s economy is driven by the services sector, which was hard hit by covid. But with India opening back up, a lot of consumer and investment demand for services has started coming through.