India is the one of the five largest economies in the world (ranking above France, Italy, the United Kingdom, and Russia) and has the third largest GDP in the entire continent of Asia. India is also the second largest among emerging nations.

The Investment Manager believes that continued government initiatives by the government of India will result in positive results for the economy a€“ such as opening the retail industry to foreign competition, lowering the consumption taxes and improving India's infrastructure such as roads, ports, and Indiaa€?s power grid resulting in an increase in productivity, consumption, and ultimately companya€?s margins.

Another huge competitive advantage lies in the make-up of Indiaa€?s population and demographic patters. The population is currently over 1.2 billion people and growing. Fifty percent of the population is under 25 years of age. A vast number of educated professionals and demonstrated core competency is fueling continued growth in technology services. In addition, the growing population and significant trickle down benefits to the middle class are resulting in explosive growth in the consumer market.

The Indian story has attracted significant media and investing attention, and the equity markets have enjoyed several years of strong gains, so some of the opportunities listed above are no doubt well understood by the market. However, the Investment Manager believes there continue to be numerous opportunities and structural impediments evident when the Indian market as compared to some of the more developed markets; and over time progress on these issues should benefit sophisticated investment managers.