INDIA’S MARKET OUTPERFORMS CHINA
While investors hope that consumer spending growth in China will eventually balance its export dependence, in the short term it is India that presents more opportunity.
Economists crow over the long-term domestic growth prospects in both emerging Asian giants, which is likely to be led by a young generation of spenders eager to buy clothes, computers, cars and other goods.
Until recently, China’s massive government stimulus spending worth 6% of gross domestic product was the biggest draw in Asia for investors chasing growth. However, last month’s stunning election victory by India’s Congress-led coalition, which allowed the grouping to secure a parliamentary majority, has turned the heads of some fund managers to the consumer-oriented sectors in India.
In addition, India’s valuations are cheaper, suggesting more upside potential for any investments...