How Can Singaporeans Get Investment Exposure to India?

In case you haven’t noticed, the 2 biggest economies in the world–the US and China–are locked in a heated “tit-for-tat” tariff war. Unfortunately, it’s not at all fun for investors who are watching on.

That’s because President Trump and his tariffs took a massive sledgehammer to our portfolios in early April (NOT cool). Although financial markets have recovered somewhat, there’s still a lot of uncertainty for those who invest in the US and China stock markets.

But here’s the good news: not all stock markets are equally affected in this ongoing trade spat. Indeed, many investors globally are starting to look more closely at India as a potential beneficiary of the long-term tensions between the US and China.

 

Why investors are looking to India

Remember, India has “only” a 10% tariff—like everyone else bar China—while it negotiates with the US on a trade deal. US Vice-President JD Vance was in India a few weeks ago, looking to hammer out some sort of trade deal–probably trying to emulate his boss’s “Art of the Deal” approach.

Putting the geopolitics and the trade disputes aside, the investment fundamentals for India remain strong. In 2023, India overtook China as the world’s most populous nation. Its population is also relatively young and starting to make more bank (i.e. that cheddar).

India doesn’t trade that much with the US and has a relatively limited manufacturing sector, which means it’s not too exposed to trade disagreements with Mr Trump! But how can we best get exposure to the Indian economy from Singapore? Here are a few options for investors. 

 

Best ways to invest in India

1. Exchange-Traded Funds (ETFs)

One of the easiest ways to invest in India is to just buy a basic exchange-traded fund (ETF) that tracks one of its key stock market indices.

MSCI India Index

Now, we should look at the makeup of any ETF we invest in and also the general benchmark that is used. In India, one of the key indices that is used for ETFs is the MSCI India Index (USD), and you might be surprised to know its performance over the past decade or so.

Over the past 10 years (as of 30 April 2025), the MSCI India Index has delivered annualised returns of +9.1%, and over the past 5 years it has delivered annualised returns of +18.1%. That’s super impressive if we compare it to the US stock market benchmark that a lot of us invest in via ETFs, the S&P 500 Index.

By comparison, the S&P 500 Index has delivered annualised returns of +12.3%, and over the past 5 years it has given investors an annualised +15.6%.

Stock market index	5-Year annualised returns (%)	10-year annualised returns (%)
S&P 500	15.6	12.3
MSCI India	18.1	9.1

Source: MSCI, Standard & Poor’s as of 30 April 2025

So, at a quick glance, Indian stocks have beaten their US counterparts since 2020 but have slightly underperformed over the past decade. Ok, yes, performance is solid, but how do we get exposure to Indian stocks (through ETFs) in Singapore?

Top ETF for India exposure

The easiest way is to utilise UCITS ETFs listed in Europe, given their dividend tax withholding benefits for non-US investors (i.e. us)! The key India ETF listed in London is the iShares MSCI India UCITS ETF (LSE: NDIA), and it’s the share class where they reinvest those dividends for you–so the “Acc” or Accumulating share class.

That’s why it’s been able to give investors a positive annualised return over the past 5 years of +19.7%, beating the gross return of the actual MSCI India Index due to reinvested dividends. It’s a bit pricier than other ETFs out there, in terms of its annual management fee, as the total expense ratio is 0.65% per annum (p.a.).

If you can’t access the London Stock Exchange (LSE) with your brokerage firm, then you can always just buy the US-listed version of this ETF, the iShares MSCI India ETF (NYSE: INDA) that’s listed in New York and tracks exactly the same thing.

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ALSO READ: Top 10 ETFs in Singapore—The Total Beginner’s Guide to Investing in ETFs (2025)

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2. Indian stocks via ADRs

Now, the problem with buying individual Indian stocks is that most people actually can’t…“huh, what’d you say?” Well, the thing is that to buy individual India-listed stocks on Indian stock exchanges, you have to be an Indian citizen or a non-resident Indian (NRI) residing outside of India.

One option for foreigners, though, is to buy Indian companies that have American Depository Receipts (ADRs) that are listed on US exchanges, such as the New York Stock Exchange or NASDAQ. The problem with this approach is that the investible universe (or the amount of Indian companies you can actually buy) is limited.

However, some of the largest companies in India do have ADRs. These include heavyweight banks like HDFC Bank (NYSE: HDB) and ICICI Bank (NYSE: IBN), as well as technology services giant Infosys Ltd (NYSE: INFY). 

This option of buying Indian ADRs would be more suited to those investors who have time to follow the actual companies and want direct exposure to specific sectors in India.

 

3. Unit Trusts

Finally, for Singapore-based investors interested in India, there’s always the easy (aka “I’m too lazy!”) option of going for unit trusts (or actively-managed funds) that are run by asset management firms.

These can be easily bought via banks’ investment platforms or direct-to-consumer fintech platforms, such as Endowus or Syfe. Most investors will be familiar with the companies that run these funds as they’re recognisable asset managers.

Some examples of funds available to investors in Singapore include the Fidelity India Focus Fund (SGD) and Goldman Sachs India Equity Portfolio (SGD). 

Of course, with the more active approach, where fund managers and analysts pick individual holdings, the cost of holding the fund is higher. For example, the Fidelity India Focus Fund has an annual management fee of 1.50%.

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ALSO READ: Tariffs, Trump, Inflation, and Market Crashes: What’s Going On?

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My own India investing preference

For investors looking to get exposure to the Indian stock market, I feel the easiest (and cheapest) way is to get it through an ETF.

The only potential downside is that you need to open a brokerage account and manually invest. Still, the cost savings over time, compared to pricier unit trusts, can be significant.

As for individual stocks, unless you’re a diehard  stock geek, most ADRs overlap with holdings in Indian ETFs anyway. For most investors, sticking with a solid ETF is the way to go.

 

Know someone who’s interested in investing in India? Share this article with them!

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About the author

Tim Phillips has spent over 15 years in the finance industry as an investment communications specialist with the likes of Schroders, The Motley Fool, and CGS International. He’s passionate about helping people take control of their finances by building wealth through long-term investing and thinking more coherently on all things “money”. He loves breaking down complex financial topics into content that’s informative and, most importantly, engaging.