Restricted investment for Indian market ETFs

The potential market within India for ETFs is huge. Demand from overseas investors is hampered by a lack of product choice and local investment rules. As one of the four largest emerging economies, India has been a major beneficiary of interest in and inflows into emerging markets. Indian equities make up just over 7% of the MSCI Emerging Market index, a fractionally larger exposure than that enjoyed by Russia. At around 14%, India is the smallest of the country components of most BRIC index based products. Yet as an investment story in its own right, India often sits in the shadows of ...