ETF Securities Australia has announced the upcoming launch of Australia’s first ETF to provide pure-play exposure to the equity market of India.

Kris Walesby, Head of ETF Securities Australia.

The fund, which is due to be listed later this month on the Australian Securities Exchange under the ticker NDIA AU, will invest in a passively managed basket of stocks listed on the National Stock Exchange of India.

It is being brought to market in partnership with one of India’s biggest asset managers which, according to sources in the Indian mutual fund industry, is understood to be Reliance Nippon Life Asset Management.

The launch comes as more than 900 million eligible voters head to the polls in India.

“The elections now underway in India underscore the huge numbers we are dealing with when it comes to the Indian economy, an investment opportunity we will soon be putting within easy reach of Australian investors,” said Kris Walesby, Head of ETF Securities Australia. “India has a $2.6 trillion economy that is home to iconic companies like Tata and Infosys. Its transformation to a services-led economy has driven innovation and efficiencies and the rise of a wealthier consumer.”

Despite challenges facing the Indian economy, Walesby believes the country can still register an annual growth rate of as much as seven percent, putting it at the head of the pack among major economies. Despite this potential opportunity, Indian equities remain a relatively difficult market to access for foreign investors.

Walesby said, “Dealing with all the red tape probably explains why no-one else in Australia has attempted the sort of fund we are about to offer. A lot of hard work has gone into NDIA. Getting to this point demonstrates the commitment of ETF Securities to innovating and providing clients with exposure to difficult-to-reach market opportunities.”