India continues to attract investors due to its strong demographic advantage, rapid digital transformation, regulatory reforms, and stable democratic framework. Rhys Thomas from LGT Crestone highlights how these four factors - demographics, digitisation, deregulation, and democratisation - position India as a compelling investment destination. With 50% of the population under 30, India benefits from a young and growing workforce, while initiatives such as the India Stack and UPI payments system are driving financial inclusion and economic expansion. These structural advantages have led to sustained growth and innovation, particularly in fintech, e-commerce, and financial services.
While Indian equities have historically traded at a premium, Thomas explains that this valuation is supported by consistent GDP growth and corporate earnings expansion. Despite recent market corrections, he believes India's long-term fundamentals remain intact, reinforcing the case for active investment management over passive strategies. Given the complexities of India's regulatory environment and capital markets, experienced managers can better navigate risks while capitalising on sector-specific opportunities. For investors seeking access to India's dynamic economy, a thoughtful approach to asset allocation and stock selection is essential.
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