The study describes Emerging Market Economies (EMEs) their characteristics and a comparison with the Developed Economies of the world. The study brings to light the macroeconomic viewpoint on why to invest in EMEs and the risks one can face and ways to navigate them. Lastly, importance of India as the most promising EME is highlighted in the study cum presentation.

1. EMERGING ECONOMIES
Focusing on India- Nov 2016
New Delhi | Noida | Gurgaon | Mumbai - Indiawww.sandmartin.com 1
SandMartin Consultants

2. Introduction
“Emerging market country is a society transitioning from a dictatorship to a free-market-
oriented-economy, with increasing economic freedom, gradual integration with the Global
Marketplace and with other members of the GEM (Global Emerging Market), an expanding
middle class, improving standards of living, social stability and tolerance, as well as an
increase in cooperation with multilateral institutions.” Dr Kvint
Characteristics of Emerging Market Economies are:
EMEs are fastest growing economies in terms of growth rate & GDP.
EMEs are considered transactional i.e. moving from closed to an open economy.
1
2
EMEs embark upon reforms that lead to a stronger, reliable and transparent economy.3
They attract both local and foreign investment in high quantities.4
EMEs are looking to strengthen their local currency by reforming its exchange rates.5
2www.sandmartin.comEmerging Economies
Emerging Market Economies (EMEs) are countries that have some characteristics
of a developed market but are not yet a fully developed market.

3. 3
Growth Differentials between Emerging and Developed Economies:
Growth Rate Comparison* MSCI Index Comparison*
Share of World’s Total GDP* Investment as a % of GDP*
www.sandmartin.comEmerging Economies
Emerging VS Developed Economies
*SOURCE: BLOOMBERG

4. Investing in Emerging Markets
Macro Economic Perspective on Why to Invest in Emerging Market Economies
The pace of growth in Emerging Market
Economies is expected to be about double that
of Developed Markets.
1
Emerging countries have younger populations
which help drive domestic consumption and
fuel growth.
2
Booming demand for commodities and rising
export revenues have further strengthened
EMEs over the recent years.
3
The adoption of prudent fiscal and monetary
policies by EMEs has fostered stability and
growth, boosting their economic fundamentals.
4
Emerging Market Economies are under-owned,
they account for 80% of the world’s population
and 50% of GDP but just 7% of world equity
capitalization.
5
4www.sandmartin.comEmerging Economies

5. Navigating Risks before Investing in EMs
There are significant misperceptions about the challenges and rewards of investing in
Emerging Market Economies, the risks are either highly understated or grossly overstated.
The same is true with opportunities.
The first critical step to exploit opportunities arising
from the EMEs is to be well-versed about the
customers, partners, stakeholders and particularly the
government with which your business is being carried
out. Due diligence by different types of lenses and
techniques through verifiable sources is essential.
1
Carrying out due diligence is challenging in the EMEs
as their institutions are nascent and information
frameworks under developed. Relying on self-
proclaimed experts of the local economies can be a
big mistake. It is essential to hire someone who has
experience of working in the challenging parts of the
world and can recognize similar problems when they
crop up. Someone who is independent to the
transaction and mutually trusted by both the parties.
2
5www.sandmartin.comEmerging Economies

6. 6
India- the most promising EME
Demographic advantage: Half of India’s
1.25 billion population is under 25.
1
India is an entrepreneurial place with
tremendous focus on education.
India is a democratic nation with a
stable government and open economy.
The stock market has been steadily
growing and the rupee is firm.
2
3
4
India is the fastest growing economy at
7.8%, surpassing China recently.
5
Facts & Figures about the Indian Economy GDP growth forecasts for EMEs
The above graph shows India growing
at the fastest rate for 2015-16 and
2016-17.
www.sandmartin.comEmerging Economies
*Initiatives started by the Indian Govt.

7. 7www.sandmartin.comEmerging Economies
SandMartin believes Indian Economy will
continue to remain strong, as inflation is
declining and wages increasing it will raise
private consumption hence boosting the
economy. The reforms in doing business
under Modi government has made India
an attractive destination for investment .
We at SandMartin with 30+ years of
experience in the market understand the
Indian economy like no other firm. We
have presence in major metropolitan
cities of India. Our 250+ workforce have
the knowledge, experience, education and
skills to guide your business get the edge
in this competitive market.
Our thoughts….
About - SandMartin
Services we provide
Audit & Assurance Services
Company Law & Secretarial Services
Tax Advisory Services
Foreign Investment Advisory Services
Transaction Advisory Services
Business Advisory
Management Consultancy
Finance & Accounts Outsourcing
Retirement & Cafeteria Plan

8. www.sandmartin.com 8
We are Located in: New Delhi | Noida | Gurgaon | Mumbai - India
Emerging Economies
Thank You