Investing in India
A few years ago, everyone wanted to put money into China. The country's GDP growth was the envy of the Western world, recalls Gordon Pape, editor of Internet Wealth Builder.
That was then. Today, China has fallen out of favor with investors. Economic growth is faltering, business failures are on the rise, and the country faces the potential of a damaging trade war with the U.S.
The new rising star in Asia is India, where NSE 50 Index (nicknamed the "Nifty Fifty") has been rising steadily since the start of the year. The stocks in the index cover a broad range of sectors including energy, finance, infrastructure, automotive, and pharmaceuticals.
The Nifty Fifty has shown a year-to-date gain of 12.4%. That's more than double the 2017 return for the S&P 500 and well ahead of the gains posted Brazil and Hong Kong.
So why are investors in love with India at this point? Basically, because the country has a government that has shown it can get things done to grow the economy. Prime Minister Narendra Modi is regarded as a business-friendly leader who is able to move forward his priorities.
His government recently pushed through a massive overall of the country's clumsy and out-dated tax system and is expected to move ahead with more changes ranging from deregulation to infrastructure spending.
Earlier this year, the country's Economic Affairs Secretary, Shaktikanta Das, predicted that the country will experience economic growth this year of 7% plus.
A UN report put the figure at 7.7% this year and 7.6% in 2018.
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