Though India’s exposure within the emerging market basket has gradually declined, India has overtaken China in terms of direct equity allocation by US investors.
- The report was revealed by US treasury showed that 1.8% of direct equity holdings of US is with India
- It is 6% equity holdings for China
- The direct investment has risen from $7 billion in September 2013 to $12 billion in December 2015.
- US investors’ direct investment in Chinese equities has declined from $12.8 billion to $11.1 billion.
Emerging Market allocation
- The allocation to India as emerging market has declined gradually
- The US investor’s equity allocation to emerging markets is down to 12%, which is lower than the peak of 18% in December 2009
- Peak allocation to emerging market for India by US in 2015-5.7%
- Peak allocation to emerging market for India by US in 2016- 3.7%
- It was compiled by Kotak Institutional equities