I currently have India accounting for just under 4% of my total portfolio, both through targeted India ETFs $FLXI (-0,62 %) , $INQP (-0,6 %) as well as indirectly through my global ETFs $VWRL (+0,05 %)
$VALLD (+0,04 %) . For me, this is a long-term addition to my portfolio, not a central investment strategy.
The performance so far, however, has been rather sobering and has largely been flat. Nevertheless, I’m sticking to my long-term investment thesis.
India is one of the fastest-growing major economies. The World Bank expects economic growth of around 7.1% for the 2026/27 fiscal year. With nearly 1.5 billion people, a young population, increasing digitalization, and a growing middle class, I see enormous potential for the coming decades.
I also find it fascinating to see how major Indian corporations are positioning themselves internationally. Companies like Tata and Mahindra have long since moved beyond investing solely in their home market; they are acquiring established European companies and gaining global prominence.
However, there are also significant risks. India is heavily dependent on energy and commodity imports, the rupee is under pressure, and foreign investors have recently withdrawn capital. In addition, despite the recent price correction, Indian stocks, with a P/E ratio of around 22, remain significantly more highly valued than those in many other emerging markets.
For me, therefore, the question is not so much whether India will continue to grow economically, but rather whether investors will benefit appropriately from this growth.
I remain invested for the long term, but I’m cautious about making additional purchases given the current valuations.
How do you view India as an investment for the next 10 to 20 years?
Are you already invested, are you currently adding to your positions, or do you prefer to invest in a broadly diversified emerging markets ETF?
I’d be particularly interested to know whether you view the current weakness as a buying opportunity or as a sign of overblown growth expectations.
Sources: World Bank (October 2026), MSCI (September 2026), Reuters.
