VanEck Vectors India Growth Leaders ETF [GLIN] Stock Forecast

In an asset class as expansive as emerging markets equities, identifying specific countries or regions with the potential to outperform is difficult, even for professional investors. Hence, many market participants lean on broad instruments, including exchange traded funds, to access developing economies.

Good growth momentum, strong credit growth, and a supportive budget environment provide a positive backdrop, though the Reserve Bank of India (RBI) still has work to do to tame inflation. Export growth is running at only about -6.5%YoY, a much smaller decline than the 20% fall we see in economies such as Korea, Taiwan, and Singapore.

India has become an increasingly attractive location for multinationals across a wide range of industries. Latest data on key economic indicators continue to show strong momentum in many sectors of the economy.

In a bygone era of emerging markets investing, one when equities in developing economies seemingly appreciated with ease, China was the leader of those gains. That's not to say the world's second-largest economy will sit idle if and when a new era of emerging markets bullishness arrives.

The MSCI India Index is down just 6% year-to-date — far better than the 20.12% shed by the MSCI Emerging Markets Index.

There are dozens of emerging markets fixed income exchange traded funds on the market addressing both corporate and sovereign debt. In what may come as a surprise to some investors, India is either just a small part or not represented at all in these funds.

India is now the fastest-growing major economy in the world, surpassing China for the first time in a generation, with close to 8% growth. India's combination of a pro-business, reform-minded government; solid corporate governance; and overall management quality stands out within the emerging markets universe.

India's demographic advantage puts the country in a position to be one of the fastest-growing global economies—if not the fastest. India remains synonymous with entrepreneurship, especially for technology firms.

India celebrated the diamond anniversary of its independence; could this be the year to seek out a “diamond in the rough” there? When digging below top-level figures, certain subsectors—like private sector banking—has enjoyed growth above headline numbers.

Now is the time to invest in high-quality growth stocks with a decent margin of safety. The post 7 Growth Stocks to Buy Now for the Coming Recession appeared first on InvestorPlace.