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Aberdeen Outlines Why Emerging Markets Are Back On The Table
Amanda Cheesley
27 October 2025
At a media event this month attended by WealthBriefing, Devan Kaloo, head of equities and head of global emerging markets at , also said at the event that he sees good opportunities in select Asian markets, notably China and Japan. "We see the supply-driven focus and ongoing policy support, especially for advanced manufacturing, R&D, and green sectors, as key tailwinds for investors," he said. "We continue to rate China’s tech sector as most attractive and China equities overall as attractive, with double-digit upside expected for the MSCI China Index over the next months. From a bottom-up point of view, we favour leaders in cloud, e-commerce, AI, digital infrastructure, and select financials and utilities." India “The direct impact of those tariffs on India is expected to be relatively limited, given that approximately 80 per cent of the Indian economy is domestically oriented. However, second-order effects could still materialise as a result of the broader global trade war,” Tahilramani said. “If the US macroeconomic environment weakens due to tariffs, corporate decisions, particularly around information technology spending, may be affected, potentially impacting Indian IT services in the medium term.” “In terms of portfolio positioning, we have relatively low exposure to Indian exporters directly affected by the tariffs, particularly those in the textiles and apparels sector,” she continued. “Most of our portfolio is focused on companies with domestic growth drivers and, given our quality focus, we expect the portfolio’s downside to be well protected.” “India is still expected to grow at a faster clip than peers such as China and other emerging markets. While earnings growth has slowed in recent quarters, we expect India to continue generating comfortable double-digit earnings growth over the medium term,” Tahilramani said. In her view, India has the fiscal and monetary legroom to support the economy. They are not alone in their views. A number of wealth managers have come out recently in favour of emerging markets and Asia this year, for instance Paris-based Amundi, Carmignac and Indosuez, as well as GIB Asset Management and Franklin Templeton. See more here, here and here.
Rita Tahilramani, investment director at Aberdeen Investments and manager of abrdn New India Investment Trust, said that India is facing some near-term uncertainties, including those brought on by US 50 per cent tariffs on Indian goods exported to the US. But she believes that India’s long-term structural growth story remains intact.