Categories: Stock Market
Topics: Alternative Investments

Investing in India’s Rising Influence

A country’s place on the world stage is determined not just by its economic and military might but by its allies and partners as well. 

This is something we’ve been seeing more of these past few years. A rising China has been exerting its influence over the waters in its part of the world. It’s also been making inroads in many parts of Africa. It wants the US and other allied countries to take notice. 

The US has pushed back, of course, allying with the likes of Japan and Australia to fight back against Chinese naval influence in that part of the world. 

Then, you have the ongoing tensions in Taiwan. China views the island as part of its territory despite the current President's party favoring independence. Taiwan’s importance in the tech sector due to its semiconductor manufacturing capabilities means that the US wants to keep it as free of Chinese influence as possible. 

All of this provides some context for what’s happening in the global economy during this era of post-pandemic recovery. 

A lot of economists initially believed that China’s recovery was going to be massive. The reopening of its economy earlier this year was predicted by some to have the kind of momentum behind it that would lead to a sustained, rapid improvement that would go on longer than it did. 

Instead, that progress stalled and the pent-up demand proved not to be as strong as many thought. That’s now leading to talks of more stimulus from Beijing. That talk has investors turning sour on the country. Instead, other countries are being looked at for those who want to play emerging markets. 

This is where India is starting to make its presence known. 

Where China’s economy is stalling, India is seemingly getting ready to take off. It’s at the point where it will be the fastest-growing economy in the next three years. It’s also predicted to become the second-largest economy in the world by 2075. 

It has a growing population of working-age adults who will be able to support the young as well as the elderly. The country’s leadership is also spending domestically on things like infrastructure. Its technology industry is also growing via several different streams. Those facts are all major reasons why it will be able to compete on the world stage. 

So it’s growing economically in opposition to China, and that could soon be true politically as well. 

Western governments have, in recent months, been cozying up to Indian Prime Minister Narendra Modi in hopes of strengthening ties between India and the West. The Prime Minister’s country’s geographic location and economic outlook are seen by some as serving as alternatives to China and its often antagonistic behavior to much of the rest of the world. 

The Prime Minister was in the US recently to meet with President Biden. Likewise, a recent visit to France saw him and President Macron agree to defense contracts. Economic and diplomatic ties between the two nations were deepened because of the visit. 

This is the kind of thing investors will notice and look to invest in accordingly. 

There is one way to play the emerging market that is India and the momentum it’s gaining in sectors like tech, finance, energy, and others.

Learn more about why India is on the rise and how investors are taking advantage of that.

Ryan Stancil
Editor, Daily Profit Cycle