India Becomes Most Attractive Investment Destination In Emerging Market

Delhi/Hyderabad, July 10 (Maxim News):  India has emerged as the most attractive investment destination among emerging markets in 2023 amid a host of global economic headwinds, According to the report of Global Investment Management firm Invesco. 

In the Invesco global sovereign Asset Management Study-2023, sovereign wealth funds favor emerging markets, particularly India, given its solid demographics, political stability and proactive regulation.  

“We observe an increased affinity for fixed income assets, including private debt, and heightened interest in emerging Markets, believed to offer potential benefits in a higher-rate environment. Among the emerging markets, India has piqued sovereign investors’ interest, overtaking China, the Invesco report said. 

This was its eleventh annual study on sovereign investors.  Initiated in 2013, it captures the viewpoints and opinions of chief investment officers, heads of asset classes, and senior portfolio strategists from 85 sovereign wealth funds and 57 central banks.  Collectively, Invesco noted these institutions manage approximately USD 21 trillion in assets. 

emerging markets, it said, offer a range of attractive investment opportunities in both public and private markets.  

“Investors are focused on economies that offer favorable demographics, political stability, and positive regulatory initiatives, with India a priority, the report said. 

India is a better story now in terms of business and political stability.  Demographics are growing fast and they also have interesting companies, good regulation initiatives, and a very friendly environment for sovereign investors, a development sovereign based in the Middle East was quoted in the report.

India is among a number of countries, including Mexico and Brazil, that are benefitting from increased foreign corporate investment aimed at both domestic and international demand through “friend-shoring” and “near-shoring”. 

Besides India, it noted important commodity-producing countries including Brazil and Indonesia, which are seen as well placed for the green transition and electric vehicle revolution, have the potential to become destinations for diversification for sovereigns with more “concentrated commodity revenue streams”. (Maxim News)    

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