Award-winning Fund with a track record of more than 19 years8, reflecting our commitment to deliver consistent results.
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What is driving India’s growth?
Now is the time to invest in India's ascendancy, where a confluence of favourable factors—from government-led initiatives like “Make in India” to “Digital India”—is making it a standout destination for investment. Seize the opportunity to grow your portfolio with India's vibrant economy and transformative progress.
Unprecedented Pace of Digitalisation
- The integration of digital technologies into various industries is enhancing efficiency, expanding consumer bases, and creating new revenue streams.
- Increased internet penetration, driven by affordable access, is boosting the growth of eCommerce and digital financial services, even in rural areas.
- The Unified Payments Interface (UPI) system is driving a shift away from cash transactions, increasing consumer spending online and enabling millions of smaller-sized firms to scale up.
- India’s digital revolution is not a temporary fad but a structural shift, offering sustained growth opportunities for investors.
Rising Affluence: A Force to Reckon With
- India boasts one of the youngest populations in the world, with a median age significantly lower than that of major developed economies.
- As India's economy expands, a significant portion of the population is moving into the middle-class bracket, leading to increased disposable incomes. This rise in income levels enhances consumers’ purchasing power, especially on non-essential and luxury goods.
- With growing affluence, Indian consumers are prioritizing quality, brand value, and premium experiences. Companies catering to these preferences are likely to see sustained growth, making them compelling investment targets.
Emergence as a Manufacturing Powerhouse
- In the wake of global supply chain reconfigurations, India is emerging as a credible alternative to traditional manufacturing hubs.
- The government has placed manufacturing at the heart of its growth strategy, aiming to increase the sector's contribution to GDP.
- New initiatives include the Production Linked Incentive (PLI) for 14 key sectors to enhance India’s manufacturing capabilities and exports.
- The expansion of the manufacturing sector is expected to create millions of jobs, thereby boosting consumer demand and economic growth.
Infrastructure Investment Fosters Sustainable Growth
- The government has been ramping up capital expenditure for infrastructure projects that boost connectivity and logistics efficiency across cities.
- Significant investments in roads, railways, ports, and airports will also bolster India’s trade prospects and economic resilience.
- The current infrastructure push not only sets a foundation for sustained growth in diverse sectors, but also creates new business opportunities and jobs, sparking a virtuous cycle of growth.
1. India: still one of the world’s fastest-growing economies
In just over a decade, India's meteoric rise from the 11th to the 5th largest global economy is a testament to its resilient growth and ambitious economic reforms. Harness the potential of India's expansive growth trajectory and be part of a story of transformative development across diverse sectors.
1. Source: International Monetary Fund (IMF), World Economic Outlook Database, as of October 2024. E = estimation.
Projections are based on IMF staff estimates. Forecast methodology differs from country to country; as such, some countries projection years may start earlier than others.
There is no assurance that any projection, estimate or forecast will be realized.
2. India’s Share of Global GDP is Steadily climbing
India's contribution to global GDP is steadily climbing, thanks to its robust internal growth, domestic consumption, increasing industrialization, and significant technological advancements2. This sustained raise not only elevates its position but also presents a strategic advantage for investors in Indian equities.
2. Source: International Monetary Fund (IMF), World Economic Outlook Database, as of October 2024. E = estimation.
Projections are based on IMF staff estimates. Forecast methodology differs from country to country; as such, some countries projection years may start earlier than others.
There is no assurance that any projection, estimate or forecast will be realized.
3. Indian Consumers are Younger and Getting Richer
India's favourable demographics, with a large and youthful population, alongside a burgeoning middle class, create a powerful engine for sustained economic growth and consumer spending.
The average age of Indians will remain under the global average by 20303…
… while the size and purchasing power of its middle class continues to grow4
P = Predicted.
3. Source: United Nations Population Division, as of end July 2024. There is no assurance that any projection, estimate or forecast will be realised.
4. Source: People Research on India’s Consumer Economy, as of 2022.
4. Indian Equities Continue to Command a Valuation Premium
India has historically traded at a premium to other emerging markets, reflecting its historically higher return on equity (ROE), signifying the robust profitability of domestic companies.
India ROE Premium vs Other Markets5
Jan 2015 - Dec 2024
2 Years Forward Price to Earnings : India vs Other Markets6
As of Dec 2024
MSCI India represented by MSCI India Index; MSCI EM represented by MSCI Emerging Markets Index; MSCI AC Asia Ex JP represented by MSCI All Country Asia Pacific Ex Japan Index; MSCI China represented by MSCI China Index.
5. Source: FactSet, Refinitiv, as of end February 2025. There can be no assurance estimated figures will be realized.
6. Source: FactSet, as of end February 2025. There can be no assurance estimated figures will be realized.
5. Nifty’s EPS Growth Reflects India’s Economic Vigour
Fueled by a rapidly expanding economy, progressive government policies, and a surge in consumer demand, the earnings per share (EPS) growth of Indian equities is likely to stay on an uptrend despite global headwinds.
Nifty’s EPS set to clock double-digit gains in coming quarters7
*CAGR = compound annual growth rate. Nifty refers to the Nifty 50 Index. F = Forecast.
7. Source: Bloomberg, Nifty EPS estimates (in INR), as of 13 March 2025. For illustrative and discussion purposes only. The scenarios presented are an estimate of future performance based on evidence from the past on how the value of this investment varies, and/or current market conditions and are not an exact indicator. What you will get will vary depending on how the market performs and how long you keep the investment/product. Past performance does not predict future returns. There is no assurance that any projection, estimate or forecast will be realised.
The Franklin India Fund is uniquely positioned to capitalise on the opportunities inherent in India’s economic ascent. And our Franklin India Equity platform is one of the best placed in the industry to capitalise on investment opportunity for our clients.
Proven Performance
Large and Stable Investment team
Our 15-member investment team establishes us as one of the global managers with the largest on-the-ground presence9.
Their domestic market specialization also offers a strategic edge in identifying opportunities.
High Conviction Portfolio
Our focus is on acquiring businesses that exhibit predictability, scalability, and unique selling propositions.
We prioritise quality and invest only in companies we thoroughly understand to ensure consistent returns.
Synergistic Global Collaboration
The sharing of insights across Franklin Templeton’s global platform enriches our India team's rigorous bottom-up research, directly benefiting our investors through enhanced decision-making
8. The Fund was incepted on 25 Oct 2005. Source: Franklin Templeton, as of 28 February 2025. Performance information is based on A(acc) USD class, in USD, NAV to NAV, taking into account of dividend reinvestments and capital gain or loss. The Fund’s YTD and past 10 years performance (2015 – 2024): -11.55% (YTD), -5.51% (2015), 1.93% (2016) ,38.08% (2017) ,-15.47% (2018), 7.44% (2019) , 12.92% (2020) , 25.55% (2021), -11.55% (2022), 26.88% (2023) and 14.76% (2024) . Past performance is not an indicator or a guarantee of future performance.
9. Source: Franklin Templeton, as of 28 February 2025.
Did you know? Fun Facts about India10
10. Source: Western Union, “7 facts you probably don’t know about India” published on 19 Jan 2023.
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