Why India continues to be an attractive investment destination for financial professionals.

Why India continues to be an attractive investment destination for financial professionals.

According to a report by www.dasinvestment.com, India shows huge potential to make the transition to the upper middle-income country category. Investors are considering that the technology, software and communications sectors in India offer high growth potential. This growth is expected to have a positive impact on all areas of consumption and living. In order to realize these changes, long-term oriented measures to overcome structural obstacles and short-term pragmatic investments in infrastructure are necessary.

According to the World Trade Organization (WTO), the average tariff rate applied by India in 2022 is 18.1 percent. Participation in free trade agreements and increased integration into the global trading system could accelerate economic development. A major challenge for India lies in upskilling its young population in order to tap its growth potential. The country also needs to address water shortages in large parts of the country.

When it comes to the stock market, high valuations suggest that investors have high expectations for companies' earnings growth. The Indian stock return is also significantly higher compared to the Chinese stock return. This indicates positive market development. However, there is also the risk of volatility and loss of capital when investing internationally. Past performance is also not an indicator of future performance.