Significant Strides in India’s Infrastructure
June 12, 2024
Read Time 2 MIN
India is making significant strides in expanding its infrastructure with a focus on building more roads and railroads. This ambitious push aims to enhance connectivity, boost economic growth, and improve the quality of life for its citizens.
While recent headlines have focused on market volatility stemming from election results that showed a stronger-than-expected opposition challenge to Prime Minister Modi, the longer-term investment landscape for India remains strong. We believe investors should view the results positively as they promise stability and the prospect of continued reforms at a moderated pace, ensuring continuity and reducing the likelihood of abrupt policy shifts.
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Key highlights from the article include:
National Highways Expansion
- The Indian government has undertaken extensive projects to expand the national highway network.
- New highways and expressways are being constructed to reduce travel time and improve connectivity between major cities and economic hubs.
High-Speed Rail Projects and Dedicated Freight Corridors
- India is investing in high-speed rail projects, including the ambitious Mumbai-Ahmedabad High-Speed Rail Corridor, which will connect Mumbai (the financial hub of India) with Ahmedabad, the largest city in the state of Gujarat.
- These projects are expected to revolutionize travel by significantly reducing travel time between major cities.
- The development of dedicated freight corridors is also a primary focus to drive the efficiency of freight transportation.
Key Stocks to Watch
Reliance Industries, ICICI Bank, and HDFC Bank are key players benefiting from the country's economic growth. Reliance Industries, a conglomerate focusing on telecommunications, retail and renewable energy industries, is well-positioned to capitalize on new opportunities arising from infrastructure expansion. HDFC Bank is a private sector bank in India that caters to a range of banking services covering commercial and investment banking as well as transaction or retail banking. In scale, it could be conceptualized as the “J.P. Morgan Chase of India.” Similarly, ICICI Bank, one of India's largest private sector banks, is positioned to benefit from increased lending and financial services demand, driven by the government's infrastructure projects, as the increased economic activity is likely to spur greater consumer spending and loan uptake from the burgeoning middle class.
To put all this in perspective, total infrastructure spending in India over the past five years has been roughly $800 billion. Relative to gross domestic product, that’s the equivalent of the United States spending $6 trillion, or five times as much as the (already enormous) 2021 infrastructure bill.
As Angus says, “You don’t go back from this kind of momentum.” Read the full article here.
How to Invest in India with VanEck
The VanEck India Growth Leaders ETF (GLIN) offers exposure to fundamentally sound Indian companies exhibiting attractive growth at a reasonable price across the broad Indian economy.
The VanEck Digital India ETF (DGIN) offers access to the structural digital growth story of India and could be an appealing investment opportunity for investors looking to seek technology or growth exposure in emerging markets.
VanEck Emerging Markets Fund offers access to the structural digital growth story of India for investors seeking technology or growth exposures in emerging markets.
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IMPORTANT DISCLOSURES
Reliance Industries is 7.53% of net assets of DGIN as of 6/6/2024 and 7.25% of the Emerging Markets Fund as of 4/30/2024.
HDFC Bank Ltd. Is 2.26Z% of the Emerging Markets Fund as of 4/30/2024.
ICICI Bank is 4.86% of net assets of GLIN as of 6/6/2024.
This is not an offer to buy or sell, or a recommendation to buy or sell any of the securities, financial instruments or digital assets mentioned herein. The information presented does not involve the rendering of personalized investment, financial, legal, tax advice, or any call to action. Certain statements contained herein may constitute projections, forecasts and other forward-looking statements, which do not reflect actual results, are for illustrative purposes only, are valid as of the date of this communication, and are subject to change without notice. Actual future performance of any assets or industries mentioned are unknown. Information provided by third party sources are believed to be reliable and have not been independently verified for accuracy or completeness and cannot be guaranteed. VanEck does not guarantee the accuracy of third party data. The information herein represents the opinion of the author(s), but not necessarily those of VanEck or its other employees.
An investment in the VanEck India Growth Leaders ETF (GLIN) may be subject to risks which include, but are not limited to, special risk considerations of investing in Indian issuers, foreign securities, emerging market issuers, foreign currency, depositary receipts, information technology sector, financials sector, industrials sector, micro-, small- and medium capitalization companies, cash transactions, equity securities, market, operational, index tracking, authorized participant concentration, no guarantee of active trading market, trading issues, passive management, fund shares trading, premium/discount and liquidity of fund shares, non-diversification and index-related concentration risks, all of which may adversely affect the Fund. Emerging market issuers and foreign securities may be subject to securities markets, political and economic, investment and repatriation restrictions, different rules and regulations, less publicly available financial information, foreign currency and exchange rates, operational and settlement, and corporate and securities laws risks. Micro-, small- and medium capitalization companies may be subject to elevated risks.
An investment in the VanEck Digital India ETF (DGIN) may be subject to risks which include, but are not limited to, special risk considerations of investing in Indian issuers, equity securities, small- and medium-capitalization companies, communication services sector, information technology sector, emerging market issuers, foreign securities, foreign currency, depositary receipts, cash transactions, market, operational, index tracking, authorized participant concentration, no guarantee of active trading market, trading issues, passive management, fund shares trading, premium/discount and liquidity of fund shares, non-diversified and index- related concentration risks, all of which may adversely affect the Fund. Emerging market issuers and foreign securities may be subject to securities markets, political and economic, investment and repatriation restrictions, different rules and regulations, less publicly available financial information, foreign currency and exchange rates, operational and settlement, and corporate and securities laws risks. Small- and medium capitalization companies may be subject to elevated risks.
You can lose money by investing in the VanEck Emerging Markets Fund. Any investment in the Fund should be part of an overall investment program, not a complete program. The Fund is subject to risks which may include, but are not limited to, risks associated with active management, consumer discretionary sector, direct investments, emerging market issuers, ESG investing strategy, financials sector, foreign currency, foreign securities, industrials sector, information technology sector, market, operational, restricted securities, investing in other funds, small- and medium-capitalization companies, special purpose acquisition companies, special risk considerations of investing in Brazilian, Chinese, Indian, and Latin American issuers, and Stock Connect risks, all of which may adversely affect the Fund. Emerging market issuers and foreign securities may be subject to securities markets, political and economic, investment and repatriation restrictions, different rules and regulations, less publicly available financial information, foreign currency and exchange rates, operational and settlement, and corporate and securities laws risks. Small- and medium-capitalization companies may be subject to elevated risks. Investments in Chinese issuers may entail additional risks that include, among others, lack of liquidity and price volatility, currency devaluations and exchange rate fluctuations, intervention by the Chinese government, nationalization or expropriation, limitations on the use of brokers, and trade limitations.
Investing involves substantial risk and high volatility, including possible loss of principal. An investor should consider the investment objective, risks, charges and expenses of the Fund carefully before investing. To obtain a prospectus and summary prospectus, which contains this and other information, call 800.826.2333 or visit vaneck.com. Please read the prospectus and summary prospectus carefully before investing.
© Van Eck Securities Corporation, Distributor, a wholly-owned subsidiary of Van Eck Associates Corporation.
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IMPORTANT DISCLOSURES
Reliance Industries is 7.53% of net assets of DGIN as of 6/6/2024 and 7.25% of the Emerging Markets Fund as of 4/30/2024.
HDFC Bank Ltd. Is 2.26Z% of the Emerging Markets Fund as of 4/30/2024.
ICICI Bank is 4.86% of net assets of GLIN as of 6/6/2024.
This is not an offer to buy or sell, or a recommendation to buy or sell any of the securities, financial instruments or digital assets mentioned herein. The information presented does not involve the rendering of personalized investment, financial, legal, tax advice, or any call to action. Certain statements contained herein may constitute projections, forecasts and other forward-looking statements, which do not reflect actual results, are for illustrative purposes only, are valid as of the date of this communication, and are subject to change without notice. Actual future performance of any assets or industries mentioned are unknown. Information provided by third party sources are believed to be reliable and have not been independently verified for accuracy or completeness and cannot be guaranteed. VanEck does not guarantee the accuracy of third party data. The information herein represents the opinion of the author(s), but not necessarily those of VanEck or its other employees.
An investment in the VanEck India Growth Leaders ETF (GLIN) may be subject to risks which include, but are not limited to, special risk considerations of investing in Indian issuers, foreign securities, emerging market issuers, foreign currency, depositary receipts, information technology sector, financials sector, industrials sector, micro-, small- and medium capitalization companies, cash transactions, equity securities, market, operational, index tracking, authorized participant concentration, no guarantee of active trading market, trading issues, passive management, fund shares trading, premium/discount and liquidity of fund shares, non-diversification and index-related concentration risks, all of which may adversely affect the Fund. Emerging market issuers and foreign securities may be subject to securities markets, political and economic, investment and repatriation restrictions, different rules and regulations, less publicly available financial information, foreign currency and exchange rates, operational and settlement, and corporate and securities laws risks. Micro-, small- and medium capitalization companies may be subject to elevated risks.
An investment in the VanEck Digital India ETF (DGIN) may be subject to risks which include, but are not limited to, special risk considerations of investing in Indian issuers, equity securities, small- and medium-capitalization companies, communication services sector, information technology sector, emerging market issuers, foreign securities, foreign currency, depositary receipts, cash transactions, market, operational, index tracking, authorized participant concentration, no guarantee of active trading market, trading issues, passive management, fund shares trading, premium/discount and liquidity of fund shares, non-diversified and index- related concentration risks, all of which may adversely affect the Fund. Emerging market issuers and foreign securities may be subject to securities markets, political and economic, investment and repatriation restrictions, different rules and regulations, less publicly available financial information, foreign currency and exchange rates, operational and settlement, and corporate and securities laws risks. Small- and medium capitalization companies may be subject to elevated risks.
You can lose money by investing in the VanEck Emerging Markets Fund. Any investment in the Fund should be part of an overall investment program, not a complete program. The Fund is subject to risks which may include, but are not limited to, risks associated with active management, consumer discretionary sector, direct investments, emerging market issuers, ESG investing strategy, financials sector, foreign currency, foreign securities, industrials sector, information technology sector, market, operational, restricted securities, investing in other funds, small- and medium-capitalization companies, special purpose acquisition companies, special risk considerations of investing in Brazilian, Chinese, Indian, and Latin American issuers, and Stock Connect risks, all of which may adversely affect the Fund. Emerging market issuers and foreign securities may be subject to securities markets, political and economic, investment and repatriation restrictions, different rules and regulations, less publicly available financial information, foreign currency and exchange rates, operational and settlement, and corporate and securities laws risks. Small- and medium-capitalization companies may be subject to elevated risks. Investments in Chinese issuers may entail additional risks that include, among others, lack of liquidity and price volatility, currency devaluations and exchange rate fluctuations, intervention by the Chinese government, nationalization or expropriation, limitations on the use of brokers, and trade limitations.
Investing involves substantial risk and high volatility, including possible loss of principal. An investor should consider the investment objective, risks, charges and expenses of the Fund carefully before investing. To obtain a prospectus and summary prospectus, which contains this and other information, call 800.826.2333 or visit vaneck.com. Please read the prospectus and summary prospectus carefully before investing.
© Van Eck Securities Corporation, Distributor, a wholly-owned subsidiary of Van Eck Associates Corporation.