Gulfs prefer to invest in India

DUBAI: India continues to present strong investment opportunities for Gulf residents, who appreciate the country's many fundamental economic strengths, an executive with JP Morgan Asset Management has said.

Many Gulf residents tend to think short term when investing internationally, and this 'herd mentality' has led many otherwise savvy investors to either exit equity positions in India funds or overlook entirely exciting opportunities now on offer, JP Morgan Asset Management Vice President Pinakin Patel told reporters here today.

"India's catalysts are enviable, structural change, economic reform, massive infrastructure investment, and a young and vibrant population. India remains a strong contender to emerge as an economic powerhouse of the 21st century," he said.

"...it is India's economic and corporate reform which holds the most promise for Gulf investors, because it means that Indian companies are now able to operate more efficiently and profitably," he added.

Although interest rate increases and slower global demand are likely to see growth rates moderate in coming quarters, India remains well-placed to continue its rapid long term economic development, he said.

The JF India Fund is currently over USD 1.4 billion in size and has delivered 350 per cent growth over the last 10 years, eclipsing the 209 per cent return achieved by the Indian stock market over the same period.