India Claims Top Spot in MSCI Emerging Markets Index, Overtaking ChinaIndia Claims Top Spot in MSCI Emerging Markets Index, Overtaking China

India has overtaken China to become the largest emerging market within the MSCI Emerging Markets Investable Market Index (IMI) as of August’s end. The index comprises large, mid, and small-cap stocks from 24 emerging economies, with India now leading the group.

China’s representation in the MSCI EM Investable Market Index has significantly reduced, now half of what it was at its peak in early 2021. Meanwhile, India has ascended to become the sixth largest stock market worldwide, positioning just after France.

The shift in market dynamics is attributed to India’s robust performance, the introduction of new listings, and enhanced market liquidity. These factors have collectively bolstered India’s position, allowing it to capture a greater share of the global market.

India’s nominal GDP growth, presently in the low teens, significantly outpaces that of China. This economic momentum is contributing to a stark contrast in corporate earnings and operational growth between the two nations, underscoring India’s rising dominance in emerging markets.