For decades, international investors looking to diversify beyond the U.S. have turned to the familiar names of developed markets—Japan, Germany, the U.K., and others. These economies offered stability, established infrastructure, and well-known multinational companies. But today, those very strengths may also signal stagnation. Growth in developed markets is tepid, demographics are aging, and innovation is often incremental.
If you're looking for international exposure that actually grows your portfolio, it may be time to break away from the traditional playbook—and turn your attention to Emerging Markets. More specifically, to India.
The Case for India: The Perfect Emerging Market
India checks every box investors look for in an emerging market—and then sets records in the process, but still it seems to remain a massive investor blind spot, with U.S. investors only having an average of 0.8% allocated to India. Here's why it's arguably the most compelling growth story in the world right now.
1. Unmatched Demographics
India is now the most populous country on the planet. But it's not just about the size—it's about youth. The average age in India is under 30, and there are more people under the age of 30 than the entire population of the United States. That translates into decades of potential productivity, consumption, and innovation. Compare this to the aging populations of Japan or Germany, where shrinking workforces and rising healthcare costs weigh heavily on economic growth.
Source: IMF
2. Accelerating GDP Growth
India currently boasts the fastest-growing major economy in the world. While official estimates hover around 6–6.5% GDP growth, recent data have outpaced expectations, with a 7.4% growth rate reported just weeks ago. There is a growing belief that India can sustain growth in the 7–8% range in the coming years—a rate that far eclipses the 1–2% growth typical of developed economies.
Source: IMF
3. The Rise of the Indian Consumer
Just as China’s rapid growth over the past two decades created a massive middle class with rising purchasing power, India is now undergoing a similar transformation. A new generation of digital-native consumers is emerging, eager to buy, invest, travel, and engage with the global economy. For companies—and investors—that means access to one of the most dynamic consumer markets in the world.
4. Democratic Stability and Pro-Growth Leadership
Unlike China, India is a democracy—the world’s largest. And over the past 11 years, under Prime Minister Narendra Modi, the country has implemented significant reforms. These include simplifying the tax code, cutting red tape, and launching a $1.2 trillion infrastructure modernization plan. In just over a decade, India has doubled its roads, railways, and airports—and this is just the beginning. High-speed rail and smart cities are on the horizon.
5. Scale You Can’t Replicate
When you look at other emerging markets—Mexico, Vietnam, Indonesia—there are interesting stories. But none can match India’s scale. Take China out of the picture, and India is bigger than all the other emerging markets combined. It’s not just an opportunity—it’s a once-in-a-century one. This level of population, youthful energy, and economic momentum simply won’t happen again, at least not at this scale.
Source: MSCI, World Bank, Bloomberg
The Bottom Line
Developed markets like Japan and Germany still have a place in diversified portfolios, especially for those focused on stability. But for growth? For real upside? Investors need to look toward the markets that are building the future—not maintaining the past.
India is not just another emerging market. We believe is the perfect emerging market—by size, by demographics, by policy, and by potential. If you’re looking for global exposure that brings real growth to your portfolio, India should be front and center.
Emerging markets are back. And India is leading the way.