Many Indian companies are strong global competitors

Article Excerpt

Fortune magazine annually lists the top 500 global companies, based on various measures. In 2021, seven Indian companies made the list, of which six are also held in the iShares India Index ETF. Top conglomerate Reliance Industries as well as several major Indian banks, were included on the list. But India is also home to a number of highly ranked global information technology services companies—Infosys, Wipro, HCL Technologies, and Tata Consultancy—to name but a few of the largest firms included in the ETF portfolio. These companies have been highly successful in reaching a global market. Infosys, for example, now derives 60% of its revenue from North America, and Tata Consultancy, 50%. The offshore outsourcing model (whereby well-qualified, but less expensive Indian workers deliver services to higher-priced developed markets) provides an attractive business model. As a result, all four of the consulting companies mentioned here have grown strongly over the past decade and are highly profitable businesses. Also included in the ETF’s portfolio are several major pharmaceutical companies…