Is India the new China?

Last week we started Emerging India's portfolio as our investment theme for April. When you heard about it last week, you might have paused for a second and asked, why India? In the world of all the new and hot IPOs, why is the Stock Card team talking about India? Well, we are glad you asked! 

Last week we started Emerging India's portfolio as our investment theme for April. When you heard about it last week, you might have paused for a second and asked, why India? In the world of all the new and hot IPOs, why is the Stock Card team talking about India? Well, we are glad you asked!

India is the fastest growing economy in the world. More than 7% growth rate per year is expected for India in the next three to five years. This growth rate is even faster than our beloved China which is expected to grow between 5% to 6% in the next few years.

Additionally, the average age of the Indian population is 27, which makes the country one of the youngest countries in the world. This young population means two things for India: 1) a growing number of consumers, and 2) a growing size of the workforce.

If you were excited about the growth of the middle class in China - which you should be, as they are the fuel for economic growth in any country - you'd be even more excited about the growing middle class in India. According to the consulting company, Deloitte, only 1% of India's population has a similar income level as the middle class in cities like Hong Kong and Singapore. 

As we said, the young population of India also means a growing workforce. As per the former head of India's Central Bank, Professor Raghuram Rajan, India has one million people entering the workforce every month, which means, the country has access to a large, low-cost workforce that can fuel the economy even further. 

Those are some of the reasons we are excited to focus on Emerging India portfolio this month. Of course, we cannot forget the role of government in the growth of the country. India's government, the upcoming election, and political battles in the country are risks that we cannot forget and must consider as we explore the opportunities in Emerging India. 

Today's Stock Card VIP pick introduces you to two investment opportunities that are fueling and benefiting from the Emerging India. 

Go to Emerging India portfolio