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Rotate from China into India on Morgan Stanley Projections?

|Includes:EPI, INDY, iPath MSCI India Index ETN (INP), INXX, PIN

The Economic Times reported today that Morgan Stanley projects India to experience faster growth than China by 2015.  MS sees India growing at 9-9.5%, while China will slow down to around 8%.  These projections differ from the IMF's current projections, which could provide for an investment opportunity.  IMF projections for the BRIC countries are given in the chart below.

GDP Growth Rates

Click to enlarge
If Morgan Stanley is right that India will be seeing more growth than originally thought, now could be a good opportunity to begin getting more exposure to the Indian growth story through the Indian ETFs INP, EPI, PIN, and INDY.  Take a look at Michael Johnston's assessment of these ETFs for a good summary.  An even better play may be the recently released India infrastructure ETF INXX.  Morgan Stanley's projections assumed a massive increase in Indian infrastructure spending, so INXX may be a good way to take advantage of that.  Lastly, make sure to keep an eye out for the IMF's next update of world growth projections, which will likely come in the October World Economic Outlook.  If the IMF begins to shift its projections in the direction of Morgan Stanley's, Indian ETFs could see additional upside.


Disclosure: No positions

Disclosure: No positions

Stocks: INP, EPI, PIN, INDY, INXX