As so often happens throughout the turbulent history of the markets, just when sentiment reached its peak reality swung back the other way. The BRICs, a "sure-bet" on above-trend growth back in 2007, have been among the most disappointing investments in the world since then.
After a breathtaking plunge of over 70% in 2008, India and China represent the backbone of an emerging market trade that has gone nowhere while parts of the developed world have ascended to new heights. With India's new pro-business government, things might be improving for investors, which is why exchange-traded funds of Indian companies may be the way to play this development.
India's GDP has nearly doubled since 2007. While the rate of growth is slowing, it will likely continue to grow between 4% and 5% this year and next. Come 2020, the country is expected to be among the fastest growing economies in the world.
One thing that always separated India from China -- vastly superior demographics -- will still be in place. A decade from now, this will be the world's most populous country in the world. It's also one of the world's youngest countries in terms of median age.