Emerging Markets: Will India Outpace China in the GDP Race?

An event last month shows just how powerful India has become on the world stage. Meanwhile, in the U.S...

Ollie Smith 16 September, 2024 | 2:17PM
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Ollie Smith: You’re going to hear a lot about emerging markets this week, but have you heard this?

India is already the world’s most populous country – outpacing China last year. But it is fast approaching the point where its economy is larger than China’s too.

With that kind of growth, you can perhaps see why western powers want to court its attention – and why the country’s prime minister seems to have the guts to cosy up to both Kyiev and Moscow when both are at war – with eachother.

I think – and this is a personal opinion – that is one of those events the world downplays but is actually of real significance. It shows that the country’s bargaining power is bigger. It shows, moreover, that Narendra Modi is now playing politics with the big boys.

Quit the politics though. There are plenty of reasons why India – and emerging markets more generally – might start to creep more into your consciousness in the coming weeks and months.

The US has had a double tech wobble this year and, while that’s a huge opportunity for investors to buy the dip, it’s also a reminder that, eventually, all good things come to an end. And in that end, it’s investors with well-diversified, global portfolios, who will feel the safest.

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Ollie Smith

Ollie Smith  is editor of Morningstar UK

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