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Numerous positive structural and cyclical factors are pointing towards a major economic upcycle in India over the next five to six years, in our view, creating a range of potential investment opportunities. We believe India’s market is supported by an evolving investment universe, powerful demographic trends, increasing urbanisation and rising wealth, export growth, geopolitical tailwinds and a supportive policy regime. These factors are coalescing at a time when the corporate deleveraging cycle of the last few years is coming to an end and a new upcycle in profitability could be beginning.
The investable landscape in India is in the process of transforming, in our view, with more internet, media and e-commerce businesses likely to come to market over the next two to three years. These industries currently make up less than 1% each of the MSCI India Index, compared to 16% – 18% each in the MSCI China Index (Figure 1).1 We believe the companies starting to list in public markets in these sectors will provide a…
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