Indian stocks experienced a wild ride last week as election results suggested that Prime Minister Modi’s BJP party might fall short of the seats needed for a simple majority. However, they rebounded when it became clear that his coalition would be able to form the government.

On Sunday, Modi was sworn in as India's prime minister for a third consecutive term. While there are concerns that it may be difficult at times for Modi to push through his agenda, investors appreciate having a business-friendly government in power.

The government retained key cabinet ministers in the important portfolios of finance, home, defense, and external affairs, suggesting policy continuity and that Modi remains firmly in control of the new coalition government.

Indian stocks and ETFs have garnered significant interest from investors lately, as the country is emerging as a clear beneficiary of China's economic crisis. China's geopolitical tensions with the US and its Western allies have also encouraged large multinationals to explore alternatives to China.

Many American companies are seeking to reduce their dependence on China. India boasts a large and highly skilled labor force, and the government is eager to attract more foreign investment.

Apple (AAPL Quick QuoteAAPL - Free Report) and Nvidia (NVDA Quick QuoteNVDA - Free Report) are among the high-profile companies expanding their presence in India.

India remains the world's fastest-growing major economy. Its GDP rose 8.2% during the fiscal year that ended in March. Goldman Sachs predicts that India will become the world's second-largest economy by 2075.

The economic growth is driven mainly by domestic consumption and investments. The rising middle class and their growing incomes will continue to boost the economy.

Last year, India overtook China as the world's most populous country, and its population is much younger than China's and most Western countries.

The country has undergone an impressive digital transformation in recent years, thanks to a combination of factors including growing internet penetration, the availability of ultra-low-cost smartphones and data plans, technological advancements, and the government's focus on building digital infrastructure.

To learn about the iShares MSCI India ETF (INDA Quick QuoteINDA - Free Report) , WisdomTree India Earnings Fund (EPI Quick QuoteEPI - Free Report) and iShares MSCI India Small-Cap ETF (SMIN Quick QuoteSMIN - Free Report) , please watch the short video above.