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 o...