In this article, I’ll detail why we think it’s time for Australian investors to look at the opportunities in the Indian share market.

Why India?

Source: IMF World Economic Outlook April 2018

The International Monetary Fund (IMF), an agency which fosters global monetary cooperation amongst countries, forecasts that global GDP will grow by 3.8% over the next six years.

Most developed countries like the US, Europe, Japan and UK are now growing at a more mature pace of 1.9%, driven by productivity rather than population growth, greater infrastructure or exports. However, the emerging economies of the world are forecast to grow at a much faster pace (5.0%), driven by stronger population growth, greater infrastructure and development and increasing exports from lower cost of wages.

Some geographies are in a sweet spot, enjoying growing consumption, investment and government spending and a pick up in their exports. India is one such geography where the IMF forecasts growth to range between 7-8% p.a. over the next 5 years. This is being driven by consumption patterns and infrastructure requirements of India’s large (1.3bn) and youthful population (50% are aged 26 or below).