The global index tracks capital market performance around the world. The index includes large- and mid-cap stocks and is a more inclusive version of the widely followed MSCI ACWI index.
India's weight in the MSCI ACWI IMI stood at 2.35 per cent in August, 11 basis points higher than China's 2.24 per cent. India is slightly behind France, by just three basis points. China's weight has halved since peaking in early 2021, while India's weight has more than doubled during this period.
Earlier this month, strong fundamentals helped India overtake China in the MSCI Emerging Markets (EM) IMI to become the top weighting. The MSCI Emerging Markets IMI captures large-, mid- and small-cap representation across 24 emerging market (EM) countries.
India's new position as the top emerging market in the MSCI EM IMI, along with the sixth largest weight in the MSCI ACWI IMI, highlights the country's growing prominence on the global investment map. There is financial stability and the growth momentum of the economy remains strong.
Other reasons include high growth rate, stable government, reduced inflation and financial discipline by the government.
According to a note by global brokerage Morgan Stanley, "India will continue to gain share due to market outperformance, new issuance and liquidity improvements."
Jonathan Garner, chief equity strategist for Asia and emerging markets at Morgan Stanley, said India's nominal GDP growth rate is "currently in the teens, more than three times that of China."
India remains its top preference in the emerging market region and its second choice in Asia-Pacific. However, the country's weight in the emerging market index could have a little further to go before peaking.
According to market watchers, the Indian economy continues to perform well and macroeconomies are improving, as indicated by the 47 per cent growth in foreign direct investment (FDI) in the April-June period of FY25.
India's weight in the MSCI ACWI IMI stood at 2.35 per cent in August, 11 basis points higher than China's 2.24 per cent. India is slightly behind France, by just three basis points. China's weight has halved since peaking in early 2021, while India's weight has more than doubled during this period.
Earlier this month, strong fundamentals helped India overtake China in the MSCI Emerging Markets (EM) IMI to become the top weighting. The MSCI Emerging Markets IMI captures large-, mid- and small-cap representation across 24 emerging market (EM) countries.
India's new position as the top emerging market in the MSCI EM IMI, along with the sixth largest weight in the MSCI ACWI IMI, highlights the country's growing prominence on the global investment map. There is financial stability and the growth momentum of the economy remains strong.
Other reasons include high growth rate, stable government, reduced inflation and financial discipline by the government.
According to a note by global brokerage Morgan Stanley, "India will continue to gain share due to market outperformance, new issuance and liquidity improvements."
Jonathan Garner, chief equity strategist for Asia and emerging markets at Morgan Stanley, said India's nominal GDP growth rate is "currently in the teens, more than three times that of China."
India remains its top preference in the emerging market region and its second choice in Asia-Pacific. However, the country's weight in the emerging market index could have a little further to go before peaking.
According to market watchers, the Indian economy continues to perform well and macroeconomies are improving, as indicated by the 47 per cent growth in foreign direct investment (FDI) in the April-June period of FY25.
