India Ranks 2nd in MSCI EM Index; China Tops

Current Context: India now ranks second after China in the MSCI Emerging Markets (EM) index, surpassing Taiwan. This solidifies India’s reputation as one of the most promising emerging markets in the world to invest in.

• India’s weightage in the MSCI EM index has surged from 7% to 17.1% in eight years.
• A report by Nuvama suggests that India could exceed a 20% weight in the MSCI EM Index by early 2024 due to ongoing institutional investments and steady Foreign Institutional Investor (FII) participation.
• The analysts at Jefferies also predicted that India will attract more foreign investment by 2024.
• This increase in India’s weightage has also contributed to increased investment flows into the country.
• In fact, the country witnessed the highest inflows observed in the last 11 years.
• Despite its growing size, India remains a relatively small part of EM portfolios, but its growing relevance is bringing its markets to the attention of global funds.

Question:

Q.1 Which country has the highest rank in the MSCI EM index?
a. India
b. Taiwan
c. China
d. Brazil