The election in India signaled the potential for stronger economic growth and Indian stocks rose 23% on the news. Prime Minister Manmohan Singh’s victory was the biggest by any Indian politician in two decades.
While investigators are looking into charges of fraud at India IT services giant Satyam, ETF investors are asking how the news affects India ETFs.
India’s fast pace of growth and the slowing global economy appear to be on a collision course. One of the world’s fastest growing economies over the past 5 years, economists are now predicting slower growth for India in 2008 and 2009.
Two types of exchange-traded products provide exposure to India: ETNs and ETFs.