New Delhi: India has overtaken China to become the sixth-largest market in the MSCI All Country World Investable Market Index (ACWI IMI). This achievement underscores India’s growing influence in the global economy, driven by robust fundamentals and financial discipline.
As of August 2024, India’s weight in the MSCI ACWI IMI stood at 2.35%, surpassing China’s 2.24%. This shift highlights the rapid growth and stability of the Indian market, which has seen its weight more than double since early 2021, while China’s has halved during the same period.
The MSCI ACWI IMI is a comprehensive index that tracks the performance of large- and mid-cap stocks across 23 developed and 24 emerging markets. India’s new position in this index reflects its strong economic performance, characterized by a high growth rate, stable government, and effective financial policies.
Morgan Stanley’s Chief Equity Strategist for Asia and Emerging Markets, Jonathan Garner, noted that India’s nominal GDP growth rate is currently in the low teens, more than three times higher than China’s1. This growth, coupled with a 47% increase in foreign direct investment (FDI) in the April-June period of FY25, has bolstered India’s standing in the global market.
India’s ascent in the MSCI ACWI IMI follows its recent achievement of becoming the largest weight in the MSCI Emerging Market (EM) IMI. This dual accomplishment highlights India’s expanding footprint on the world investment map and its potential for continued market outperformance.
As India continues to gain prominence, market watchers remain optimistic about its future trajectory. The country’s financial stability, growth momentum, and improving macroeconomic indicators suggest that India is well-positioned to maintain its upward trajectory in the global market.
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