India takes the spotlight in emerging markets
Obama’s timely visit comes in the wake of notable progress in India’s economy. Modi has emphasized fiscal policies since coming to office and has strived to increase overseas trade. He has also set out to reduce political corruption and bureaucracy which have previously deterred potential investors. The result? The World Bank and International Monetary Fund have both estimated that India will outpace China as the world’s quickest growing economy within just two years.
So while the emerging economies may have yielded disappointing results for the past three in four years, that doesn’t mean you should give up hope. On the contrary, investors could do well to take advantage of the current low stock and index evaluations. If the global economy rebounds, it looks likely that countries like India will lead the way in terms of economic growth. It may just take a little investor confidence to get the ball rolling. Let’s see how strong the Obama effect is.