India Overtakes China in MSCI Index
India’s robust economic performance continues to draw significant foreign investment.
Close-up of earth on globe. (Image Courtesy: freepik)
India has now surpassed China as the largest component in the MSCI EM Investable Market Index (IMI) and is expected to become the leading weight in the broader MSCI Emerging Markets index.
The MSCI Emerging Markets IMI includes 3,355 stocks from 24 countries, capturing nearly all of their market capitalisation.
Morgan Stanley attributes India's growing index weight to strong fundamentals, including improved earnings and market enthusiasm.
Despite some risks, India’s robust economic performance continues to draw significant foreign investment.
Key factors contributing to this positive trend include a 47% increase in foreign direct investment (FDI) in the early part of 2024, decreasing Brent crude prices, and substantial foreign portfolio investment (FPI) in Indian debt markets.
These developments underscore India’s strong economic outlook and growing influence in global emerging markets.
