MSCI India is set for a third consecutive year of surpassing MSCI China, with projections indicating a fourth year in 2024. MSCI, or Morgan Stanley Capital International, serves as a global equity index provider, and the MSCI India index reflects the performance of Indian stocks.
This momentum is driven by India's robust economic growth, boasting a nominal GDP exceeding 12% in 2023 and anticipated double-digit expansion in 2024. Key factors contributing to India's success include a burgeoning urban middle class, increased manufacturing investment (including foreign multinationals), and advancements in infrastructure. In contrast, China grapples with challenges like debt, deflation, and demographics, resulting in a modest forecasted 5% nominal GDP growth in 2024. India's thriving earnings, showcasing a 61% increase in MSCI India's USD EPS since early 2021, underscore its current supremacy over China, marking a historic period of Indian market outperformance.