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India’s bustling economy has caught the attention of ETF investors the world over. If you’re one of the investors thinking about adding an allocation to India to your portfolio, read (and watch) on.

What’s not to like about India? Yes, there’s still corporate and government corruption and inefficiency, but the massive country has plenty going for it that may ultimately help it surmount the negatives:

  • The International Monetary Fund (IMF) has forecast 7.8% growth in 2011
  • Internal consumption is high, somewhat insulating the economy from global downturns
  • The Indian rupee is soaring, keeping consumer spending power top-notch
  • India’s middle class is larger than the entire population of the United States

Using ETFs is an ideal way to play along with India’s growth for a variety of reasons. Like many emerging markets, it can be a challenge for an individual investor to buy Indian stocks. India’s government is suspicious of foreign investment and places tight controls on it. ETF providers have taken every step to ensure liquidity in these funds and have done all the homework for you.

  • WisdomTree India Earnings Fund (NYSEARCA:EPI)
  • iShares S&P India Nifty 50 (NASDAQ:INDY)
  • PowerShares India Portfolio (NYSEARCA:PIN)
  • iPath MSCI India ETN (NYSEARCA:INP)

Disclosure: None

Source: Four ETFs to Target India’s Rapidly Growing Economy