For long term potential India has a lot going for it. The demographics are very favourable, the economic growth rate is impressive and potentially sustainable and there is considerable room to improve the economy though infrastructure development and deregulation.
Yesterday I finally made the decision to make a long term investment in the India growth story by purchasing some units in the Lyxor India ETF. The other reason for making this investment was to increase the diversification in my equity portfolio.
While the Indian SENSEX stock index was about 22% off its peak in early January, I have no idea whether the index will fall further. Accordingly, this is a relatively small initial purchase which I will consider adding to in the future.