India: A Beacon of Stability in Turbulent Times

Amid ongoing global trade uncertainties, India has emerged as a relatively safe haven among emerging markets, according to a recent report by JP Morgan. The financial giant highlights India's unique position, benefiting from falling inflation, improved system liquidity, and reduced government borrowing.

Projected to Lead Global Growth in 2025

JP Morgan projects that India will record the highest GDP growth among all countries in its global universe in 2025. This growth is further supported by demand-side stimulus, improving urban household finances, a favourable monsoon, and a rebound in the rural economy.

Investment Appeal and Market Performance

With a 19 per cent weight in the MSCI Emerging Markets Index and an "Overweight" rating from JP Morgan, India's stability and economic trajectory make it attractive for long-term investors. Despite not being among the top performers by absolute return, India's year-to-date performance stands strong.

Emerging Markets: A Turnaround in Fortunes

The report notes a reversal in the trend of outflows from EM equities, with fresh inflows reflecting rising investor confidence. The weakening US dollar and a positive shift in earnings forecast revisions further bolster the case for EM assets, including India.