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Three Reasons Why India Tops China’s Emerging Market

When you talk about emerging markets today, the BRIC nations immediately spring to mind – Brazil, Russia, India and China.

China tends to receive the most press within that quartet. But here’s why you should choose India instead.

1. Better Protected: India’s economy is much more sheltered from the global financial contagion because it’s smaller, less reliant on export growth of goods and the central bank is much more conservative in its monetary policy. Unlike China, India isn’t in the position where it must produce goods and keep the factories running in order to please the populace. Instead, it is focused on developing the country by internal consumption. And a big part of that comes from.
2. A Fast-Growing Technology Market: India exports what China cannot – technology services. So instead of running factories at full tilt, it has offices that service the fastest-growing sectors of global economies. In addition, technology actually performs better in a recession than the production of hard goods, since people use technology to make operations more efficient.
3. An Authentic Market Rebound: And now for the meat of it when it comes to investing. While the Indian stock market has rebounded on a par with China’s over the past year, the rebound is absolute. That’s because it’s not stimulated in large part by government spending for make-work projects.

InvestmentU 11:36, October 5, 2009 (PDT)

Reference

• "Investing in Emerging Markets: Three Reasons Why You Should Buy India, Not China" Article from InvestmentU

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