Invest in the remarkable: GRIN

India's rapid digitisation, thriving equity market and demographic trends have created compelling investment opportunities.

India is carving out a niche in the global investment landscape and becoming a rising investment destination. Key drivers include:

• High GDP growth supported by policy tailwinds;
• Favourable demographics and a growing middle class; and
• Government-led initiatives fostering improved efficiency.

Further, while many countries scramble to recalibrate in response to Trump’s shifting US trade policies, India’s relative detachment from global trade could help it weather shocks that may harm more trade-dependent economies. India’s tariffs are high, and its share of global exports remains under 2%. India's vast domestic market has fuelled its growth.

According to the International Monetary Fund (IMF), India is on track to become the third-largest country by GDP within the three years. Such significant economic growth is not just a reflection of the country’s vast population but is indicative of its robust economic activities, rising consumer base, and the entrepreneurial spirit that thrives within its borders.

India has doubled the size of its economy over the past decade and its growth story is set to continue

Chart 1: India GDP, current prices (Billions of US dollars):

Source: IMF, World Economic Outlook Update, January 2025

The growth is being driven by a growing workforce. The result is a growing middle class. Based on the most recent figures, over the course of the last decade, the middle-class demographic expanded by over 14%.

Chart 2: India Income by segment (% of population)

Source: World Development Indicators, DataBank (worldbank.org)

India’s population is dispersed, with a large segment in rural areas. During Prime Minister Modi’s tenure, which began in 2014 when he was elected for the first time, there has been a trend toward urbanisation and rising affluence.

Chart 3: India’s Poverty rate has plummeted

Source: Ministry of Statistics and Programme Implementation, Living Standards

Multiplier effects stemming from this transition could have a significant impact on the overall economy and government policy has fostered this.

Indian policymakers have laid the groundwork for a conducive business environment. These policy tailwinds, crafted with a forward-looking vision, are instrumental in ensuring that the country sustains prolonged periods of growth. Streamlined regulations, business-friendly reforms, and incentives for both domestic and foreign investors have positioned India as an attractive destination for capital.

For example, the implementation of Goods and Services Tax (GST) in 2017 consolidated multiple tax laws into a single system with a motto, “One nation, One market, One tax”. The result was:

• Significant revenue increases which directly contributed to economic growth;
• The ability to implement a series of compliance and digital reforms; and
• The elimination of multiple layers of taxes, lowering the costs of doing business.

With increased revenue, the government has undertaken spending to drive future growth. There's a noticeable push across various sectors of the economy to reinvest and rejuvenate. Whether it’s the modernisation of its age-old infrastructure, making strides in healthcare access, or addressing the housing needs of its vast population, there's a palpable momentum.

Table 1: Growing budget prioritises productive infrastructure

*Reflects the average projected growth rate of other categories as of 2024. Source: VanEck, Bloomberg as of 12/31/2024.

Following a recent pullback, now could be the time to invest in India

New ETF on ASX: GRIN is underpinned by our conviction in a "Growth at a Reasonable Price" (GARP) approach as an optimal strategy to access the Indian equity market, by targeting strong fundamentals without overpaying.  

Step into India’s growth potential

• Access companies at the forefront of one of the largest and fastest-growing economies in the world.

Systematic GARP investing approach 

• Captures opportunities by focusing on those Indian equities with top GARP (growth at a reasonable price) attributes as rated by MarketGrader’s methodology.

Access a portfolio of fundamentally strong Indian companies

• A portfolio of 50 equally weighted Indian equities combining growth potential with reasonable valuations.

Key risks: An investment in our India ETF carries risks associated with: ASX trading time differences, India, financial markets generally, individual company management, industry sectors, foreign currency, sector concentration, political, regulatory and tax risks, market access, fund operations, liquidity and tracking an index. Once available, see the PDS and TMD for more details.