New Delhi sources have made a statement that the demand is so strong that assets of Nomura Holdings Inc.'s India equity fund quadrupled to almost 400 billion yen ($3.6 billion) in just the past year. Japanese investors owned $13 billion of Indian stocks and bonds at the end of June, the most in data going back to 2012, according to India's regulator.According to sources India's economy is expanding at about seven times the pace of Japan's, buoyed by a burgeoning middle class and more one than million young people joining the labor force every month. Indian shares have hit multiple records this year amid optimism about Prime Minister Narendra Modi's policies.
Meanwhile PM Modi has burnished India's appeal through policy changes aimed at boosting growth, curbing corruption and improving public finances. The country's 10 year bond yields 6.43% the highest level among major Asian economies, versus just 0.07 % in Japan.
Accordingly India is the only country among major emerging markets that satisfies all the conditions a sizable economy, high growth rate and yield, and political stability.
