India’s reforms move ahead

Article Excerpt

ISHARES INDIA 50 ETF $33.02 (Nasdaq symbol INDY; buy or sell through brokers; us.ishares.com) is an ETF that invests in the 50 largest, most liquid Indian securities. Indian stocks have moved up 34%, to record highs, since the May 2014 election of Narendra Modi as prime minister. The government has just introduced its first full-year budget, and the $290-billion spending plan includes an additional $12 billion to address one of the country’s most pressing needs—modernizing its transportation, communications and electrical infrastructure. The budget also aims to boost private investment through measures including cutting corporate taxes to 25% from 30% and letting firms finance infrastructure with tax-free bonds. Many issues still need addressing, including selling off state enterprises, reforming land and labour laws and ending costly subsidies. However, Prime Minister Modi’s business-friendly approach bodes well for India’s prospects. iShares S&P India is a buy. buy. …

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