The year 2023 proved to be particularly successful for the Indian economy, thanks to a significant increase in investment from both individual investors and the resumption of foreign investment inflows. India's stock market, which is the fifth largest in the world, is approaching a record valuation of $4 trillion. The market capitalization of Indian stocks has tripled since the pandemic low in March 2020 and reached $3.93 trillion. The NSE Nifty 50 index has reached a new record high. This growth was partly driven by political stability following the victory of Prime Minister Narendra Modi's ruling party in key state elections in three states, which reduced political risk for investors. India is actively positioning itself as an alternative to China for global investors and companies. In 2023, foreign funds invested more than $14 billion in the Indian economy. There was also a significant increase in retail investment, which began during the pandemic. India's GDP growth is also impressive: in the third quarter of this year, the country's economy expanded by 7.6% compared to last year, which makes India even more attractive against the backdrop of China's slow recovery. Similar trends are observed in the MSCI index: India is on track to exceed the global emerging markets index by more than 10 percentage points for the third year in a row.
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