South Korea Overtakes India as India's MSCI EM Index Weight Falls to Fourth
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India Slips to Fourth in MSCI EM Index as South Korea Pulls Ahead
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CNBC TV18•06-02-2026, 21:09
India Slips to Fourth in MSCI EM Index as South Korea Pulls Ahead
•India's weight in the MSCI EM Index fell to 13.34% by January 2026, ranking fourth behind China, Taiwan, and South Korea.
•Global investors are shifting focus to AI and semiconductor-led rallies, impacting India's index representation.
•Technology giants like TSMC (12.5%) and Samsung Electronics (4.7%) dominate the index, while India's top heavyweights HDFC Bank and Reliance Industries contribute less than 2%.
•India's limited exposure to high-growth technology themes is a key factor despite being the world's fifth-largest equity market.
•Sustained foreign institutional investor (FII) outflows and a weaker earnings outlook have contributed to India's underperformance.