How important is India's economy to global investors?

India's MSCI weighting will become smaller

India is becoming increasingly relevant. Not only does it have the world’s fastest-growing large economy, but it will soon be the world’s most populous nation.

Therefore, does it not make sense to look at India as a standalone allocation, as global investors increasingly do with China? There is no doubt that as an investment opportunity, India has proved a tough nut to crack. In the past, foreign access to domestic markets was notoriously difficult, while persistent volatility and lack of transparency discouraged many investors. Emerging markets: Hard work is still to come Some investors may be concerned that considering India as a separate asset class is slightly premature. Afterall, the only other emerging market economy to really enjoy...