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Will India be the breakout emerging market this decade?
Brad Freer
Portfolio Manager
Shlok Melwani
Equity Portfolio Manager
Rahul Sadiwala
Asian banking analyst

India's significance as a rising global power came to light with Prime Minister Narendra Modi's recent visit to the United States, where he addressed Congress, met with high-profile business leaders and dined at the White House. 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.

For a democracy of its size, the country has seen relative political stability over the past 10 years, allowing economic development to be a top priority. While political instability and market volatility may increase in advance of general elections next year, we believe that India is poised for a period of secular growth, fuelled by significant expansion in direct and fixed asset investment.

Below are some key of the key aspects that make India appealing compared with other emerging markets.

- India will likely become a desirable location for companies looking to diversify their supply chains outside of China.

- India's digital transformation and infrastructure boom are helping unlock growth in different areas of the nation’s equity market.

- With a median age of 29 years1, India has one of the most attractive demographic profiles among the world’s largest economies.


1. As at May 2022. Source: The World Factbook

Bradford F. Freer is an equity portfolio manager with 33 years of investment industry experience (as of 12/31/2023). He holds a bachelor’s degree in international relations from Connecticut College and is a CFA® charterholder.

Shlok Melwani is an equity portfolio manager at Capital Group. As an equity investment analyst, he covers Europe and India as a small- and mid-cap generalist. He has 18 years of investment industry experience and has been with Capital Group for nine years. He holds an MBA from London Business School and a bachelor’s degree in economics from Cornell University. He also holds the Investment Management Certificate. Shlok is based in London.

Rahul Sadiwala is an equity investment analyst at Capital Group with research responsibility for Asia-Pacific financials and fintech, and in India as a generalist. He has 16 years of investment experience and has been with Capital Group for 10 years. Earlier in his career at Capital, he covered Asia Pacific Telecom, Indian infrastructure, IT services and pharmaceuticals. Prior to joining Capital, he was a management consultant at McKinsey & Co. and an equity analyst at Goldman Sachs & Co. He holds an MBA from the Wharton School of the University of Pennsylvania and a bachelor’s degree in business administration from Washington University in St. Louis. He also holds the Chartered Financial Analyst® designation. Rahul is based in New York.

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