India’s economic prospects are shining bright, attracting global investors eager to capitalize on the country’s immense growth potential. With a population of nearly 1.5 billion, and over half under the age of 30, India boasts a burgeoning middle class fueling strong consumption trends. The International Monetary Fund expects India’s real gross domestic product (GDP) to expand by 6.5% in 2024. “When we look at the [variables] driving GDP, this crosses all levels of the economy, all areas and all sectors and you’re checking all boxes, which leaves for bright prospects for earnings growth,” said Malcolm Dorson, senior portfolio manager of the India Active exchange traded fund (ETF) at Global X. However, tapping into these opportunities as a foreign investor is not as straightforward as buying shares listed on the Indian stock exchanges. Limits on foreign ownership, complex tax implications and corporate governance concerns create barriers. For investors looking to gain exposure to India’s promising market while minimizing some of the hassle, here are some of the best ways to do it: Exchange Traded Funds One of the simplest routes is through ETFs that specifically track indexes comprised of Indian stocks. Some of the largest and most liquid India ETFs available to investors include the $9 billion iShares MSCI India ETF , WisdomTree India Earnings Fund with $2.7 billion in assets, and the $808 million Franklin FTSE India ETF . However, investors should be aware of the risks in emerging markets like India. One way to mitigate these risks is through actively managed funds that can conduct thorough analyses of companies. The Adani Group allegations last year served as a reminder of the potential risks in emerging markets and the value of active fund managers who can conduct deep analysis on companies. Notably, during the first two months of 2023 when Adani shares plummeted, the benchmark MSCI India index fell around 8%, while a sector of predominantly active India equity funds dropped a more muted 4%. “While the case is far from clear-cut, it’s a reminder for investors of the value of active fund managers, who have the experience and resource to engage with and analyse businesses from the bottom-up, in navigating emerging regions,” said Alex Watts, investment data analyst at stockbroker Interactive Investor. Some top India ETFs trading in the U.S., UK, Canada, Germany and France include: Stocks on U.S. and U.K. exchanges Certain large Indian companies have stocks that trade on foreign exchanges as a dual-listing or as American Depositary Receipts (ADRs) and Global Depositary Receipts (GDRs). This allows investors outside India to buy shares more easily. ADRs are a way for investors to own shares in a foreign company, with the shares themselves held by a U.S. bank. This simplifies the process for U.S. investors by allowing them to trade these shares on American stock exchanges. Similarly, GDRs serve the same purpose but are mostly traded on the London Stock Exchange. Major Indian firms with ADRs trading in the U.S. and U.K. markets include: U.S. and European stocks with high Indian revenues Investors can gain indirect exposure to India’s growth through multinational companies that derive a significant portion of revenues from the country. While these stocks don’t provide pure-play India exposure, they offer a way to invest in the country’s upside without direct ownership of local shares. For instance, India is the largest source of revenue for telecom equipment maker Nokia . The Finnish company is building a fiber optic network for Airtel and 5G wireless connectivity to Reliance ‘s Jio — two of India’s largest mobile phone service providers. “I think that we’re seeing both domestic and foreign direct investment coming into India more for structural reasons, given the penetration rates, the demographics, and also as supply chain beneficiaries coming out of China,” Dorson said. Here are U.S. and Europe-listed stocks with large Indian revenue streams: