India’s economic prospects are bright, attracting global investors eager to tap into the country’s immense growth potential. With a population of nearly 1.5 billion, more than half of whom are under 30, India boasts a thriving middle class fueling strong consumer trends. The International Monetary Fund expects India’s real gross domestic product (GDP) to grow by 6.5% in 2024. [variables] driving GDP, this cuts across all levels of the economy, all areas and all sectors and you are ticking all the boxes, which leaves good earnings growth prospects,” said Malcolm Dorson, senior India portfolio manager Active exchange traded fund (ETF) ) at Global For investors looking to gain exposure to the promising Indian market while minimizing some of the hassles, here are some of the best ways to do so: Exchange Traded Funds One of the simplest routes is through ETFs that specifically track indices made up of Indian stocks. available to investors include the $9 billion iShares MSCI India ETF, the WisdomTree India Earnings Fund with $2.7 billion in assets and the $808 million Franklin FTSE India ETF. However, investors should be aware of the risks in emerging markets like India. One way to mitigate these risks is through actively managed funds that can conduct in-depth analyzes of companies. The Adani Group allegations last year served as a reminder of the potential risks in emerging markets and the value of active fund managers who can conduct in-depth analysis on companies. Notably, during the first two months of 2023, when Adani shares slumped, the benchmark MSCI India index fell about 8%, while a sector of mostly active Indian stock funds lost a more modest 4% . “While the issue is far from clear, it is a reminder to investors of the value of active fund managers, who have the experience and resources to engage and analyze businesses from the bottom up, in navigating the emerging regions,” said Alex Watts, investment data analyst at stockbroker Interactive Investor. Some of the major Indian ETFs traded in the US, UK, Canada, Germany and France include: Shares on US and UK exchanges Some large Indian companies have shares that trade on foreign exchanges as dual-lists or as American Depositary Receipts ( ADR) and Global Depository Receipts (GDR). This allows investors outside India to buy shares more easily. ADRs are a way for investors to own shares of a foreign company, with the shares themselves held by a U.S. bank. This simplifies the process for US investors by allowing them to trade these stocks on American exchanges. Likewise, GDRs serve the same purpose but are mostly traded on the London Stock Exchange. Top Indian companies with ADRs trading in the US and UK markets include: US and European stocks with high Indian revenues Investors can gain indirect exposure to India’s growth through multinational companies that derive a significant portion of their revenues from the country. While these stocks don’t provide pure exposure to India, they offer a way to invest in the country’s upside without owning local stocks directly. For example, India is the main source of revenue for telecommunications equipment manufacturer Nokia. The Finnish company is building a fiber optic network for Airtel and 5G wireless connectivity for Reliance’s Jio, two of India’s largest mobile phone service providers. “I think we are seeing both domestic and foreign direct investment coming into India more for structural reasons, given penetration rates, demographics, and also as supply chain beneficiaries coming from China,” Dorson said. Here are the stocks listed in the US and Europe with large Indian revenue streams: