India Overtakes China as Top Emerging Market for Investment; Invesco Study Reveals India’s Rising Attractiveness and Stability!

In a recent study conducted by Invesco Global Sovereign Asset Management, India overtakes China as Top emerging market for investment. The report highlights several factors that contribute to India’s rise in popularity, including its business and political stability, expanding demography, strong regulatory measures, and favourable environment for sovereign investors.

This is how the world sees India today – India just flipped China as the most attractive global target for sovereign investment emerging markets

"India is a better story (compared to China) in terms of Business and Political stability. Demographics are growing fast, they have… pic.twitter.com/oMIlvUQRtV

— Rajeev Chandrasekhar 🇮🇳 (@Rajeev_GoI) July 11, 2023

The study, which gathered insights from 142 chief investment officers, heads of asset classes, and senior portfolio strategists representing 85 sovereign wealth funds and 57 central banks, manages a collective sum of approximately $21 trillion in assets.

According to the report, India has now taken the lead over China in terms of investing in emerging market debt. The country’s solid demographics, political stability, and proactive regulation were cited as key drivers for its attractiveness. Additionally, India, along with other nations such as Mexico and Brazil, is benefiting from a surge in foreign corporate investment targeting both domestic and global demand. This trend has bolstered currencies, domestic assets, particularly debt, and current account deficits.

The study also highlighted South Korea and India as the most appealing destinations for increased exposure. Both public and private markets in emerging nations offer a diverse range of attractive investment opportunities.

The Invesco report further identified inflation as the most significant short-term risk to global economic growth, followed by rising geopolitical risks, tight monetary policies, supply chain disruptions, and the environmental impact of climate change.

Central banks, seeking to mitigate inflation risks and yield volatility, view gold as a safe-haven asset. Consequently, the report noted a surge in gold purchases, reaching record levels last year, with this trend continuing into the first quarter of this year.

India has surpassed China as the most enticing emerging market for investment, according to 85 sovereign wealth funds and 57 central banks with a total asset value of USD 21 trillion. N According to a poll conducted by global investment management firm Invesco, pic.twitter.com/j2VPabY5sz

— Care Portfolio Mgr.. (@carepms) July 11, 2023

India’s position as the most attractive emerging market for investment underscores its growing stature on the global stage. With favourable economic conditions, robust regulatory frameworks, and increasing interest from international investors, India appears poised for further growth and development in the years to come.

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