The Aberdeen New India Investment Trust reported a 41p per cent increase in its share price for the year to March 31, after a 34.7 per cent rise in net asset value.
The company outperformed the MSCI benchmark index, which rose by 36.1 per cent.
The Trust’s chairman said that Indian companies had made sizeable gains in the year, thanks to the increased reforms enacted by the Modi government.
“Domestic stocks remained fairly resilient, and largely insulated from the twin external shocks of Brexit and Donald Trump's election victory, as well as the Federal Reserve's two well-flagged interest rate hikes,” chairman Hasan Askari said.
He added that the outlook remains bright for Indian investment. “India remains a domestically-focused economy, and this insulates it from much of the global volatility that affects other emerging markets.
"Both consumer spending and capital investment remain muted and some structural reforms such as bank recapitalisation have not been addressed as yet. Nevertheless, the overall economic outlook is positive and should present investors with periodic opportunities to add to their current positions.”
The New India fund has a market capitalisation of £261m and net assets of £288m. The share price has increased by over 98 per cent over five years.
