Last week was tough for the world's fifth-largest economy, India.  The Indian government reported total GDP growth of 5% of the April-June quarter, marking the country's slowest quarter in six years. 

The announcement caused many private banks to downgrade their 2020 growth forecast for country including Goldman Sachs which lowered its growth forecast for the country to 6%.

A line of cars on the highway.

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And all of this turbulence has investors in India paying close attention. Does it mean investors should hold off on putting money into India? 

Think long term

The truth is, at the moment, India's economic pullback shouldn't be the cause of major concern. 

India has been one of the world's fastest-growing economies for years, surpassing China's growth rate in the fourth quarter of 2017. The country aims to be a US$5 trillion economy by 2024.

Despite the current slowdown, there are quite a few companies in India that are poised for growth. Such companies demonstrate an ability to flourish outside of India (as well as within it). Here, I'll take a look at two such stocks which also happen to be traded as American Depositary Receipts (ADRs) – meaning they are available to all foreign investors to buy. 

1. Tata Motors

Based in Mumbai, Tata Motors Limited (NYSE:TTM) has rapidly become one of India's largest auto manufacturers. And the company is still making big moves. 

In 2008, Tata acquired Jaguar Land Rover from Ford Motors, putting it in a position to capitalize on surging SUV demand from neighboring China.  Chinese consumers purchased 10 million SUVs in 2017. And that demand is not likely to slow. McKinsey expects SUVs to retain their appeal, stating that by 2022 one out of every two cars sold in China will be SUVs. 

Beyond this, Tata is in a unique position to profit from the ongoing trade war between China and the US, considering the tariffs that have been placed on American vehicles by China.

2. Infosys

Infosys Limited (NYSE:INFY) is an Indian multinational company that provides consulting, information and technology services, and outsourcing for companies around the globe. Infosys currently operates in 46 countries and is worth US$46 billion, and there is still room to grow. 

In its first-quarter 2019 fiscal report, Infosys reported digital revenue growth of 41%. Digital revenue now accounts for 35.7% of the company's overall business. The company has also continued to expand in global markets, seeing broad-based growth in service lines, geographies, and industry segments.

Beyond that, Infosys appears to be financially strong, announcing that it would be returning 85% of free cash flow to shareholders for a five-year period.  

Foolish takeaway

Both Infosys and Tata Motors prove that investors shouldn't shy away from Indian companies simply because the country's economy is slowing down. There will still be multiple Indian-based companies that are solid long-term buys because they are thinking ahead: targeting global industries and catering to emerging markets where demand is strong.  

By looking at the bigger picture, these companies can buffer themselves from economic issues at home. That said, it's also important to remind ourselves that India is still growing rapidly. It's unrealistic to expect a country's economy to grow without some pullback in the pace of growth.

So while investors should keep an eye on the situation, there is no need to panic. For long-term investors, opportunities still abound in the Indian market. 

A version of this article originally appeared on our Fool Asia site. For more coverage like this head over to

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