Macro Minutes: India, Market Leader or Laggard

Key Points

  • In India, we are likely to see temporary economic bounce before growth returns to pre-COVID conditions. The pre-COVID growth trend had been slowing.
  • India implemented supportive monetary and fiscal policy measures to offset the impact of COVID and support economic growth, but India’s history of expanding its deficit is mixed for equities.
  • Recent reforms have been modest and are unlikely to create enough optimism for sustained outperformance.