Top India ETFs for 2025: Best Investment Opportunities for Global Investors

Economic

Summary:

Discover the top India ETFs for 2025. Explore the best options for diversifying your portfolio and tapping into India's growing economy, including sector-specific ETFs and broad-market choices.

India is one of the world’s fastest-growing major economies, with a burgeoning middle class, a thriving technology sector, and increasing foreign investment. For global investors looking to diversify their portfolios, investing in India’s growth story is an appealing option. One of the easiest and most efficient ways to gain exposure to India's dynamic economy is through Exchange-Traded Funds (ETFs).

ETFs allow investors to buy a basket of Indian stocks or bonds without the need for directly picking individual securities. As we look ahead to 2025, the Indian market is expected to continue expanding, making India-focused ETFs an attractive choice for long-term investment.

In this article, we’ll explore the top India ETFs for 2025 that offer diverse opportunities for investors to tap into India’s economic growth.

1. iShares MSCI India ETF (INDA)

The iShares MSCI India ETF is one of the most popular and liquid India ETFs available to U.S.-based investors. It seeks to track the performance of the MSCI India Index, which includes a broad range of large- and mid-cap companies listed on Indian stock exchanges.

Key Features:

Diversification: The ETF provides exposure to over 80 companies across various sectors, including financials, information technology, consumer discretionary, and energy.

Liquidity: With high trading volume and a low expense ratio, INDA is ideal for investors seeking cost-effective access to India’s equity market.

Sector Weighting: The ETF has a significant weighting in the IT and financial sectors, reflecting the importance of these industries in India’s economy.

Why It’s a Top Pick for 2025: As India’s technology sector continues to evolve, with companies like Infosys, Wipro, and Tata Consultancy Services driving global growth, INDA provides investors with solid exposure to the Indian market's leading players.

2. WisdomTree India Earnings Fund (EPI)

The WisdomTree India Earnings Fund is an ETF designed to track the performance of the WisdomTree India Earnings Index. Unlike other ETFs, which focus solely on market capitalization, the EPI index is based on earnings, meaning it includes companies with strong profits.

Key Features:

Earnings-Based Approach: EPI focuses on companies that generate strong earnings, offering a more value-oriented approach compared to market-cap-weighted indices.

Sector Focus: The ETF is heavily weighted toward financials, energy, and materials, which are key sectors driving India’s growth.

Dividend Potential: Many of the companies in the EPI index have solid dividend histories, offering potential income generation along with capital appreciation.

Why It’s a Top Pick for 2025: The earnings-based focus of EPI allows investors to tap into India's most profitable companies. Given India's strong growth prospects and its evolving financial and industrial sectors, EPI is poised to continue benefiting from the country’s economic expansion.

3. Invesco India ETF (PIN)

The Invesco India ETF offers exposure to the Indian equity market by tracking the performance of the Indus India Index. This ETF includes a diverse array of companies, ranging from traditional industries to emerging sectors like technology and healthcare.

Key Features:

Broad Market Exposure: PIN holds a diversified portfolio of large- and mid-cap stocks, providing comprehensive exposure to various sectors such as technology, financials, healthcare, and consumer goods.

Cost-Effective: With a relatively low expense ratio, this ETF is a cost-efficient way to invest in India’s growth potential.

Global Appeal: PIN offers an easy way for investors to access Indian markets without the complexity of trading on Indian exchanges.

Why It’s a Top Pick for 2025: India’s growing middle class and increased spending on technology and healthcare make this ETF a strong candidate for investors who want broad-based exposure to the Indian economy. As sectors like fintech, e-commerce, and healthcare continue to thrive, PIN offers ample growth potential.

4. First Trust India Nifty 50 Equal Weight ETF (NFTY)

The First Trust India Nifty 50 Equal Weight ETF provides exposure to India’s Nifty 50 Index, but with a twist—each stock in the index is weighted equally. This contrasts with traditional indices, which are market-cap weighted and can disproportionately favor larger companies.

Key Features:

Equal Weighting: By equally weighting the 50 largest companies on the Nifty 50 Index, NFTY avoids the overexposure to the largest companies and offers more balanced exposure.

Broad Exposure: The ETF covers various sectors, with a notable emphasis on information technology, financials, and consumer services.

Active Management: The equal-weighting strategy provides a more active way of investing in India’s top companies without focusing solely on the largest players.

Why It’s a Top Pick for 2025: NFTY allows investors to gain diversified exposure to the Nifty 50 without being overly reliant on the biggest companies, like Reliance Industries and Tata Consultancy Services. The equal-weight strategy helps investors capture growth across all 50 companies, potentially offering better risk-adjusted returns.

5. Motilal Oswal NASDAQ-100 ETF (MOFN)

While not exclusively focused on Indian equities, the Motilal Oswal NASDAQ-100 ETF offers indirect exposure to Indian companies listed on the Nasdaq stock exchange. As India’s tech industry grows and more companies go public, this ETF gives investors access to major Indian tech stocks listed in the U.S., such as Infosys, Wipro, and HCL Technologies.

Key Features:

Tech-Savvy Exposure: The ETF provides a unique way to invest in India’s technology sector by gaining access to Indian firms that are part of the NASDAQ-100.

Diversification: In addition to Indian tech stocks, it includes exposure to global companies, offering a broader range of tech-focused investments.

Why It’s a Top Pick for 2025: India’s tech sector is expected to continue driving global growth. This ETF provides an opportunity to invest in India’s top tech firms while also benefiting from the growth of the U.S. tech market.

6. ICICI Prudential Nifty Next 50 Index Fund

For investors looking to invest in the next generation of Indian companies, the ICICI Prudential Nifty Next 50 Index Fund is a compelling option. It targets the next 50 largest companies on the Indian stock market, just after the Nifty 50.

Key Features:

Growth Potential: This ETF focuses on mid-cap and emerging companies that are poised for significant growth.

Sector Diversification: Like many Indian ETFs, it offers exposure to a wide array of sectors, including financials, industrials, and consumer goods.

Indian Focus: This fund exclusively focuses on Indian companies, providing a more concentrated bet on India’s market.

Why It’s a Top Pick for 2025: As India continues to grow, the Nifty Next 50 companies are likely to benefit from strong economic tailwinds. This ETF is ideal for investors looking for higher growth potential in smaller, emerging companies within the Indian market.

Conclusion

As India’s economy expands, the demand for ETFs offering exposure to the Indian market will continue to rise. Whether you’re looking for broad-market exposure, sector-specific investments, or emerging companies, the top India ETFs for 2025 offer a range of opportunities for global investors. By incorporating these ETFs into your portfolio, you can take advantage of India’s rapid growth and diversify your investments for the long term. Always assess your financial goals and risk tolerance before making investment decisions to ensure a balanced approach to your portfolio.

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Alex

Economic

(Jan 14): The United Arab Emirates is planning a US$6 billion (RM27.03 billion) mega solar and battery project to provide uninterrupted power supply as it targets a rapid boost in clean energy.

Abu Dhabi’s state-controlled Masdar will build 5.2GW of new solar capacity, chief operating officer Abdulaziz Alobaidli said. It will be linked to battery storage that would make the total project one of the world’s largest such facilities when completed by 2027.

The project is seeking to tackle a critical problem for renewable energy, where supply can be unreliable during periods of heavy demand because of its dependence on the sun shining and wind blowing. Companies have been trying to resolve the problem by using batteries to store the power that can be fed into power grids when required.

The facility will “transform renewable energy into baseload energy,” said Masdar Chairman Sultan Al Jaber, who is also CEO of Abu Dhabi National Oil Co. “It is a first step that could become a giant leap.”

The UAE, the first Gulf state to declare a target to reach net zero carbon emissions by 2050, is building solar facilities and is operating nuclear reactors to cut reliance on hydrocarbons for power. It is looking to add more solar facilities and battery storage sites as the oil-rich nation targets more carbon emissions-free electricity.

The project, which will be built over an area of 90 sq km in the Abu Dhabi desert, will be financed by a mix of debt and equity, Masdar’s Alobaidli said. State utility Emirates Water and Electricity Co will also be involved, Al Jaber said.

Masdar is targeting battery storage of 19GWh for the facility, the chairman said. Arevia Power and Quinbrook’s Gemini solar energy storage project in Nevada in the US, which has 1.4GWh of storage capacity, is currently the world’s biggest solar and battery project, according to BloombergNEF.

“This is an ambitious plan, and depending on when it is built, it may be the world’s largest solar and storage project at that time,” BNEF analyst Jenny Chase said.

Other countries in the Gulf are also following similar paths. Saudi Arabia, the world’s biggest oil exporter, is building solar and wind projects as it aims for a bigger share of renewables in its power grid. Still, crude oil remains the backbone of the economy of most of these nations.

Source: Theedgemarkets

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Warren Takunda

Economic

Writing in The Times ahead of her appearance, Reeves says she will confirm to parliament that "growing the economy is the number one mission of this government."

"This government is intent on creating growth that raises the living standards of working people across Britain by putting money in their pockets, creating wealth and opportunity," she says.

These lines are well rehearsed and were routinely rolled out when courting businesses ahead of the General Election.

However, the rise in government yields ahead of her appearance confirms talk is no longer enough, and markets now need concrete steps that will provide evidence the government can put the UK economy on a growth footing.

The fear is that mere talk will fail to stimulate the growth the UK needs to fund its huge and growing debt burden, leaving Reeves with no option but to execute a series of spending cuts and tax rises, with the lion's share of the work falling on taxes.

"All the chatter on FICC desks is that rather than reconsider the spending side of the ledger; the UK govt will come back for more tax in a self-defeating cycle. Again, whilst the govt has said it won't, it also hasn't definitively ruled it out - so no one really believes the promise as Reeves is seen to have lied in opposition about tax plans," says Simon French, Chief Economist & Head of Research at Panmure Liberum.

Confidence in Reeves' credibility and verbal effectiveness - words can engender confidence - has been significantly undermined as her first budget proved the antithesis of pro-growth.

French explains that the problem facing Reeves is that bond market investors, who can choose whether to own UK debt, have mainly noticed large public sector pay settlements, which come despite more than 25 years of flat public sector productivity. In addition, there has been a sharp drop in economic sentiment reported since Labour came to power.

"The assessment is that this is simply a 'crowding out' of private sector activity by lower value public sector activity - and whether that conclusion is right or wrong, investors don't like what they see," says French.

Reeves says she wants to foster growth, but in October blindsided businesses with a significant tax raid. Simon Roberts, the chief executive of Sainsbury's, said the decision to increase employer National Insurance from April was "not something anyone expected – certainly, it wasn’t expected at the speed it was coming at".

Businesses need certainty and a clear cost roadmap. Surprising them with significant cost increases means plans need to be torn up, savings found and charges raised.

"Business sentiment took a sharp turn for the worse in the latter months of the year, as business leaders digested the full implications of the government’s early policy decisions. Business was dismayed by the tax increases announced in the Autumn budget, and also concerned by the aggregate impact of proposed employment law reforms," says Dr. Roger Barker, Director of Policy at the Institute of Directors.

Roberts says Sainsbury's typically on 12-month horizons or longer, meaning there was little time to adapt.

Kate Nicholls, CEO of UKHospitality, said, "it's the halving of the threshold which caused the main challenge with lack of notice on economic shock of cost - business budgets were left with a massive black hole."

The government raised the tax rate paid by employers on employee salaries while slashing the pay rate at which the National Insurance charge is levied.

Source: Poundsterlinglive

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Justin

Economic

The Bloomberg Dollar Spot Index slid as much as 0.4%, while the 10-year yield slipped three basis points to 4.75% after a report showed Trump’s economic advisors are discussing a slow and steady approach to tariffs rather than a large one-time increase. Such gradual restrictions could weigh on the dollar as they would slow inflationary pressure and potentially give more breathing room for the Federal Reserve to reduce interest rates.

The pullback in the dollar gauge followed five days of gains that drove it to a two-year high on Monday (Jan 13). The drop was its biggest since Jan 6, when the greenback fell following a Washington Post story that claimed Trump was planning to pare back tariff plans. The president-elect denied that story in a post on Truth Social.

“Dollar weakness can be sustained unless President Trump denies the reporting like he did in reaction to the report by the Washington Post,” said Carol Kong, a strategist at Commonwealth Bank of Australia.

Risk-sensitive currencies like the Australian and kiwi dollars jumped against the greenback, pointing to a sense of relief that a large tariff shock may be avoided. China’s offshore yuan, a prime selling target for traders betting on US tariffs, initially edged higher after the report.

The dollar’s drop underscores the key role tariffs play in swaying sentiment across the US$7.5 trillion-a-day foreign-exchange market. But the move may prove temporary: Most Wall Street banks expect the greenback to strengthen following an 8% rise in 2024, and blowout employment numbers last week have raised further questions about the pace of potential rate cuts.

A reading of producer prices later in the day will offer more clues into US price risks. Economists expect wholesale prices to rise on a monthly and yearly basis, according to a Bloomberg poll, which could support the dollar and keep upward pressure on US yields.

Goldman Sachs Group Inc sees potential for the dollar to climb 5% or more this year. Speculative traders including hedge funds and asset managers are more bullish on the greenback than they have been since 2019, according to Commodity Futures Trading Commission data compiled by Bloomberg for the week ended Jan 7.

“You can’t chase this thing, as a denial will be coming soon,” Win Thin, global head of currency strategy at Brown Brothers Harriman & Co in New York, said of the recent headlines. “Look through the noise and rest assured the dollar rally will continue on the US economic outperformance alone.”

Even those predicting that the greenback will lose steam think the decline may be some way off. The dollar is somewhat overvalued but a bout of dollar weakness is likely to be “more of a second-half phenomenon,” according to Mark Haefele, chief investment officer at UBS Global Wealth Management.

Knee-jerk reaction

The South African rand, South Korean Won and Taiwanese dollar led emerging market currencies higher on Tuesday. That pared losses since the start of the year, as investors shunned riskier assets in the face of the incoming Trump administration.

“The tariff headlines are positive for Asia FX as it suggests a less draconian approach, but at the moment it’s still headlines,“ said Eddie Cheung, a senior emerging-markets strategist at Credit Agricole CIB in Hong Kong. “While the knee-jerk reaction is positive, I think markets will still want a bit more confirmation.”

Source: Theedgemarkets

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Warren Takunda

Economic

High government spending and a growing need among big economies - from the United States to Britain and France - to tap bond markets to fund their outlays have shot up the list of concerns for some policymakers and investors.

This year has started with a selloff across global government bond markets, with Britain in particular caught in the crosshairs.

France's inability to enact belt-tightening measures due to political instability has also hurt its standing in financial markets. And rising U.S. Treasury yields suggests some sceptism among investors that a new U.S. administration will curb a high budget deficit.

No wonder talk of a return of bond vigilantes is growing.

WHO EXACTLY ARE BOND VIGILANTES?

The term, coined in the 1980s, refers to debt investors who seek to impose fiscal discipline on governments they perceive as profligate by raising their borrowing costs.

It can also apply to monetary policy. Investors can demand more compensation to lend money if they think central banks and governments are failing to contain inflation.

Higher government borrowing costs can spill over into higher lending rates for consumers and companies, putting economic and financial stability at risk if they spiral out of control.

WHERE DID THEY GO AND ARE THEY BACK?

Bond markets were placated in the 1990s as U.S. President Bill Clinton's government made balancing the budget a priority after initial spending concerns sparked a jump in Treasury yields.

In the following decades, central bank bond buying in the United States and elsewhere played a powerful role in dampening government borrowing costs, particularly after the global financial crisis of 2007-2008.

But a surge in inflation since 2021 and a jump in government spending, exacerbated by the pandemic and energy-price spike following Russia's invasion of Ukraine, combined with a retreat of central banks from bond buying, means bond investors now carry more heft.

WHAT ELSE HAS CHANGED?

The focus today is on the surge in government bond issuance while in the 1980s, it was inflation, says Ed Yardeni, the economist who coined the term back then.

Inflation, though sticky, has come down in big economies, while debt is piling up.

The U.S. budget deficit grew to $1.833 trillion for the fiscal year 2024, equivalent to 6.4% of economic output, the highest reading outside of the COVID-19 pandemic. Britain's government debt has hit 100% of economic output for the first time in recent history. Germany is the only G7 economy remaining with a debt ratio below 100%.

WHERE HAVE THESE VIGILANTES BEEN IN ACTION RECENTLY?

The biggest example is Britain. Borrowing costs surged one percentage point within a week in 2022 as bond investors were spooked by plans to slash taxes and raise borrowing at a time the national finances were already under pressure. That forced a policy U-turn and the resignation of then-Prime Minister Liz Truss.

On Monday, Britain's long-dated government bond yields hit fresh multi-decade highs as global debt concerns remain in focus.

Last year, the premium that bond investors demand to lend money to France over safer German debt briefly hit its highest since 2012 as political turmoil stalled efforts to reduce the budget deficit.

Emerging markets face pressure too. Brazil's borrowing costs jumped in December while the real hit fresh record lows against the dollar as markets put government spending plans and a wide budget deficit to the test.

SO, THEY REALLY ARE POWERFUL?

History suggests so and Yardeni reckons their strength now stems from the fact that outstanding debt has shot up in recent years.

U.S. Treasuries outstanding have surged to $28 trillion, from below $20 trillion before the pandemic and less than $5 trillion before the 2007-2008 global financial crisis.

Yet bond vigilantes haven't had the sway they've had in Britain elsewhere yet. The U.S. deficit has not declined despite concerns and French politicians torpedoed a belt-tightening budget even though the prime minister warned it could lead to a financial "storm".

Still, analysts say that a rise of more than one percentage point in U.S. Treasury yields since late September partly reflects bond investors expressing concern about the spending plans of the incoming Trump administration.

But the prospect for interest rates remaining higher amid a strong economy is also raising yields.

Source: Reuters

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Alex

Economic

US President Joe Biden's outgoing administration is finalising rules on Tuesday that will effectively bar nearly all Chinese cars and trucks from the US market, as part of a crackdown on vehicle software and hardware from China.

Washington's latest move against Chinese vehicles comes after the Commerce Department said this month it was considering a similar crackdown on Chinese-made drones, in the wake of last year's steep tariff hikes on imports of its electric vehicles.

"It's really important because we don't want two million Chinese cars on the road and then realise...we have a threat," Commerce Secretary Gina Raimondo told Reuters in an interview, citing national security concerns.

In September last year, her department proposed a sweeping ban on key Chinese software and hardware in connected vehicles on American roads, with software prohibitions to take effect in the 2027 model year and those on hardware in 2029. They also bar Chinese car companies from testing self-driving cars on US roads.

The rules also cover Russian vehicles and components.

The US Commerce Department said in the final rules it was making some changes, such as exempting vehicles heavier than 10,000 pounds from the requirements, which would let China's BYD continue to assemble electric buses in California.

On Monday, the department said it planned to soon propose rules barring Chinese software and hardware in larger commercial vehicles, including trucks and buses. A final decision will be up to the incoming Trump administration.

In a shift, the department said the bans would not cover Chinese software developed before the new rules took effect, so long as it was not being maintained by a Chinese firm.

That means General Motors and Ford could potentially continue to import some Chinese-made vehicles for US buyers, a senior official told reporters.

The Alliance for Automotive Innovation, representing GM, Toyota Motor, Volkswagen, Hyundai Motor, and other major automakers, unsuccessfully sought an additional year to meet the hardware requirements.

Polestar, the Swedish automaker that is a brand of China's Geely warned in October that without changes the Commerce rule would "effectively prohibit" it from selling vehicles in the US.

An administration official said officials expect Polestar would need to seek specific authorisation under the final rule. Polestar declined to comment.

In September, the Biden admnistration finalised steep tariff hikes on Chinese electric vehicle imports, and this month, it put key Chinese battery company CATL on a list of firms accused of aiding the country's military.

US President-elect Donald Trump, who takes office on Jan 20, wants to prevent Chinese auto imports but is open to Chinese automakers building vehicles in the US.

Source: Theedgemarkets

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Warren Takunda

Cryptocurrency

Bitcoin experienced significant selling pressure on Jan. 13, falling below $90,000 for the first time in eight weeks. This decline represented a 12.5% price drop over seven days, tempering traders’ optimism. Despite this, Bitcoin derivatives metrics signaled a neutral to bearish outlook, suggesting that whales and market makers remained largely unaffected by the downturn. Bitcoin Price Dip Below $90K Driven by Investors Bracing for Upcoming Economic Risks_1

Bitcoin Price Dip Below $90K Driven by Investors Bracing for Upcoming Economic Risks_1

Bitcoin 2-month futures annualized premium. Source: Laevitas

Bitcoin futures monthly contracts typically trade at a premium over the spot market due to their longer settlement period. The current annualized premium of 11% exceeds the neutral range of 5% to 10%, reflecting optimism among market participants. Similarly, the funding rate for perpetual BTC contracts — preferred by retail traders — has remained positive, indicating a neutral to positive sentiment. Bitcoin Price Dip Below $90K Driven by Investors Bracing for Upcoming Economic Risks_2

Bitcoin Price Dip Below $90K Driven by Investors Bracing for Upcoming Economic Risks_2

Bitcoin perpetual futures 8-hour funding rate. Source: LaevitasOnn

Jan. 13, the funding rate turned negative for a brief period due to heightened demand for bearish positions. This shift coincided with the liquidation of $107 million in leveraged long positions. However, the indicator quickly normalized to 0.5%monthlyh, showing no sustained bearish sentiment in Bitcoin futures markets.

Bitcoin price pressured as investors exit risk markets

Investor sentiment deteriorated after the S&P 500 index failed to maintain levels above 6,000 on Jan. 6, declining 4.1% over the following week. A stronger-than-expected US jobs report raised concerns that the Federal Reserve might keep interest rates elevated for longer than anticipated.

This uncertainty pushed the 10-year US Treasury yield to its highest level since November 2023, signaling that traders demand higher returns to hold government bonds. Such dynamics often reflect fears of inflation or recession, compounded by weakness in the broader stock market. Bitcoin Price Dip Below $90K Driven by Investors Bracing for Upcoming Economic Risks_3

Bitcoin Price Dip Below $90K Driven by Investors Bracing for Upcoming Economic Risks_3

US Dollar Index (left) vs. US 10-year Treasury yield (right). Source: TradingView / Cointelegraph

The appreciation of the US dollar against a basket of foreign currencies, measured by the DXY index, indicates that major investors are adopting a cautious stance, favoring cash and short-term bonds. Geopolitical tensions intensified after the US imposed stricter sanctions on Russian crude oil exports, threatening supply chains to key consumers like China and India, according to Yahoo! Finance.

Some analysts argue that Bitcoin’s recent performance has relied excessively on MicroStrategy. On Jan. 13, the company announced the completion of another Bitcoin purchase, adding 2,530 BTC within a week. This brings its total Bitcoin holdings to a substantial level, supported by $6.5 billion in approved share sales. Additionally, the firm plans to raise $2 billion through perpetual preferred stock offerings.

Institutional Bitcoin flows signal mixed sentiment

US-listed spot Bitcoin exchange-traded funds (ETFs) saw $718 million in outflows over two days, raising questions about institutional demand. However, inflows of $1.94 billion during the preceding three sessions suggest that it might be premature to conclude a waning interest in Bitcoin. Despite recent fluctuations, Bitcoin has posted a 37% gain over the past 90 days, underscoring its resilience.

Traders must account for risks tied to a potential global economic slowdown, as uncertainty drives investors toward cash positions. Regardless of the measures implemented by President-elect Donald Trump, the US fiscal outlook for 2025 is likely to remain challenging.

With limited policy flexibility to avoid stoking inflation, the risk of a recession remains tangible. This environment could dampen short-term appetite for Bitcoin as investors prioritize safety over assets deemed risky.