India In Position to be the Most Profitable Emerging Market of the Decade

As per Capital Group, one of the world's largest institutional investors and India's largest foreign portfolio investors, India's robust economic growth, political stability, and transformative reforms have put the country on track to become the breakout emerging market of the decade. The Capital Group manages $2.2 trillion in assets around the world. "India is known as the market that has perplexed both optimists and pessimists." Could this be its golden era? According to Brad Feer, Shlok Melwani, and Rahul Sadiwala in a recent report, "from our recent travels around the country, we believe indications are pointing in the right direction: corporate confidence is high, the economy is expanding at a decent clip, and technological innovation is leading to new areas of growth."

The report illuminates the factors that distinguish India as an appealing investment destination when compared to other emerging markets. India's recent political stability, pro-business reforms, infrastructure development, manufacturing potential, growing equity market, investment opportunities, and demographic advantage are examples of these.

Under Prime Minister Narendra Modi's leadership, India has seen a series of pro-business reforms that have propelled growth and brought sweeping changes to the economy. Aadhaar, a biometric identification system, and the implementation of a national goods and services tax (GST) have streamlined processes, increased credit availability, and formalised previously unregulated industries. Furthermore, the implementation of the Unified Payments Interface (UPI) has transformed the payment system, benefiting both traditional banks and non-bank financial institutions.