India’s economic rise: A market no investor can ignore, say experts

India emerges as a key market for global investors: Industry experts

According to top industry experts, India has rapidly transformed into a market that investors can no longer afford to overlook, driven by government reforms, a thriving tech sector, and strong economic growth. Speaking at a recent seminar organized by The Asset in partnership with Deutsche Bank, panelists highlighted India’s growing prominence in global investment portfolios and its positive outlook for the future.

Five years ago, India’s weight in the MSCI Emerging Markets (EM) Index was just 9%. Today, that figure has more than doubled, surpassing 20%. Experts at the event described India as a “growth story” with numerous structural advantages, pointing to the country’s increasing penetration across various product categories and sectors.

“India is now a crucial part of the emerging market landscape,” one expert noted. “With its diverse and expanding economy, it offers a compelling investment proposition.”

India’s remarkable rise within the MSCI EM Index, where the top five countries account for nearly 80% of the weight, signals its growing economic significance. Additionally, India is set to receive another boost when its government bonds are included in the JP Morgan Global Bond Index-Emerging Markets (GBI-EM) for the first time in June 2024. This move is expected to attract billions of dollars of new investment into the country.

Global brokerage CLSA has already shifted its “tactical allocation” from China to India, citing concerns about China’s economic performance and investor sentiment, particularly following the US presidential election. In a note to clients, CLSA explained, “We are anxious that concerns over US yields and inflation expectations could lead to a slowdown in Chinese investment, prompting us to reverse our previous tactical positioning.”

The shift comes after both MSCI China and MSCI India corrected by 10% in US dollar terms, but the firm noted that its reallocation to India, with a 20% overweight position, has paid off so far.

India’s financial integration with global markets is set to deepen even further. FTSE Russell recently announced that India’s sovereign bonds will be added to its prestigious Emerging Markets Government Bond Index (EMGBI) in September 2025. The inclusion will place India’s debt in the $4.7 trillion global bond index, with a final weight of 9.35%, second only to China. This development is expected to boost India’s profile in the international bond market significantly.

In addition to bond market gains, India’s position in the MSCI All Country World Investable Market Index (ACWI IMI) has also surged. India has now become the sixth-largest market in the index, surpassing China for the first time in recent years.

These milestones highlight India’s growing influence in the global financial landscape and its increasing appeal to investors looking for stable returns in emerging markets.

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