Overall, emerging markets have taken a beating so far in 2014, but analysts are pointing to one so-called BRIC market as especially attractive: India.
Analysts who watch the BRIC markets–Brazil, Russia, India and China–say India’s near-term future is promising. India’s equity market is up 6 percent this year, while the emerging market index is down about a percent in the same period.
India’s rise comes despite economic hiccups on the subcontinent. After enjoying speedy growth over the past decade, India’s economy hit the brakes in 2012 with rising inflation, a growing current account deficit and a weakening rupee, which lost almost 13 percent against the dollar in 2013.
The growth of Asia’s third-largest economy has slowed to 4.7 percent–far below the double-digit growth it enjoyed in recent years. As a result, India has been dubbed a “fragile five,” a term used to identify five economies–India, Turkey, Brazil, Indonesia and South Africa–that are seen as too dependent on foreign capital.
But despite the recent economic slowdown, there’s optimism for a bright future ahead.