- India has overtaken China in the MSCI Emerging Markets Investable Market Index (EM IMI), with a weight of 22.27% compared to China’s 21.58%.
- This shift reflects India’s stronger market performance, driven by robust macroeconomic fundamentals and impressive corporate performance across large, mid, and small-cap indices.
- The MSCI EM IMI includes 3,355 stocks across 24 emerging markets, representing about 85% of free-float-adjusted market capitalization.
- India’s greater small-cap weighting contributed to its rise in the index.
- Favourable macroeconomic conditions have boosted Indian equities:
- 47% rise in Foreign Direct Investment in 2024
- Declining Brent crude prices
- Significant Foreign Portfolio Investment in Debt Market.
- In contrast, China’s economic headwinds have reduced its market performance.
Dig Deeper: Read about criteria of IMF for Emerging Market Economies, Developing and Advanced Economies.
