Is India still full of Eastern promise?  Is the economy on the rise or would you be throwing good money after bad?

In short, this economy is sizzling.  Despite the slowdown, Indian economy was largely insulted from toxic assets.  In the boom years growth was compounded with cash and investor injected money, from overseas into the country.  The 2008 -2009 reductions resulted in a slowdown in construction projects. and shrinkage in the job market. Today, when these calamities are over, India's BSE Sensex outperforms the S&P500 by about 20% margin over the last year.

The 7th of April 2010 signified a 25 month high in Indian Stock Market.  The economy still continues to boom and this is great news for ETFs and your money.  Its pillar of strength is its 'home' consumption, a 1 billion population explains why. Another significant fact is the country's low dependence on exports.  International Monetary Fund remains very confident about India. Worth to mention is the fact that the middle class of India is larger than the entire population of the US and therefore there are likely to be less spikes in its balance of trade.  This is the opposite to the US which is dependent on importing much of its consumer goods.

Consider this, by 2025 it is expected that India will upstage the US economy with growth rates of 14% commencing in 2014, manufacturing being the catalyst.  The only downside is that even with an $8.7 billion investment in infrastructure projects, it was commented that 'It is not a question of money, it is a question of can we get it started?'  

Good for your money?  Yes as the right fundamental ingredients exist. The ways to invest are through Power Shares India (ticker - PIN), WisdomTree India Earnings (ticker - EPI) and iPath MSCI India Index ETN (ticker - INP).

See you in the next 24.

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