India Overtakes China As Most Attractive Emerging Market For Investing: Report The report noted that India is among a number of countries, including Mexico and Brazil that are benefiting from increased foreign corporate investment aimed at both domestic and international demand
By Teena Jose •
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A report by global investment management firm Invesco, has stated that India has overtaken China as the most attractive emerging market for investing, where the country is increasingly viewed positively for its improved business and political stability, favourable demographics, regulatory initiatives, and a friendly environment for sovereign investors.
The report titled 'Invesco Global Sovereign Asset Management Study' included views from 142 chief investment officers, heads of asset classes along with senior portfolio strategists from 85 sovereign wealth funds and 57 central banks.
The report noted that India is among a number of countries, including Mexico and Brazil that are benefiting from increased foreign corporate investment aimed at both domestic and international demand. This was seen as helping fund current account deficits as well as support currencies and domestic assets including debt.
In addition, India and South Korea continue to be the most attractive destinations for increasing exposure, the report noted and added that emerging markets offer a range of attractive investment opportunities in both public and private markets.
The report found inflation as the most significant short-term risk to global economic growth. This was followed by rising geopolitical risk, tight monetary policy, supply chain disruptions and impact of climate change on the environment as other risks.
According to the report, more than 85% of the 85 sovereign wealth funds and 57 central banks noted that inflation will be higher in the coming decade.
