Growth Markets are more than just an exciting investment opportunity, they are also a driver to global economic growth and that’s why at Red Ribbon we believe that no investment portfolio can be properly balanced unless at least 10% of its assets are invested in Growth Markets. It is a segment that simply cannot be ignored, offering potential for future returns that are exponentially greater than any mature western market can offer; growth rates are simply so much higher and the demographics so much more robust, driven by large and expanding populations that are increasingly hungry for new products and services and a better lifestyle. Growth Markets are largely categorised as the BRICS nations, which are Brazil, Russia, India, China and South Africa followed closely by the Next 11 or N11 economies. Our first target market is India.

India is one of the fastest growth market economies in the World; predicted by the United Nations to overtake China as the most populous country on the Planet by 2020; it is now categorised as a Growth Market on GSAM criteria (one of the original BRIC economies) and in December 2016 it overtook the United Kingdom to become the fifth biggest economy on the planet by Gross Domestic Product. India is more of a continent than a country and is rapidly developing to become an economic powerhouse.

With an expanding and increasingly urbanised population, India also has an exceptionally robust base for current and projected consumer consumption. Not only is the subcontinent’s population projected to be the biggest in the world by 2020, the United Nations has also predicted that its population will reach 1.7 billion by 2050. India has an increasingly literate population that is technically qualified enabling it to rapidly turn into a global manufacturing and services hub. Companies as diverse as Boeing, Fiat and Samsung have made major investments in India over recent years; supported in substantial part by official Indian government policy, which is making an already burgeoning economy a hotbed for investment. It is not just the large corporates but also small and medium enterprises that are investing and entering the Indian market owing to the supportive policies and growth opportunities.

The Indian Government is also committed to a programme of infrastructure investment on an unprecedented scale from ports, road and rail infrastructure and metro links through to renewable energy (where India is the fifth largest market). Public housing programmes, in particular ‘Housing for all’ the affordable housing programme, have also received a fresh impetus from recent government initiatives.

And that, in essence, is why we believe India is currently the most exciting Growth Market in the world. It offers the perfect environment for our Mainstream Impact Investment strategies and we are very excited to be part of this future.

Interested in knowing how to invest in India?

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