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.
Investing in financial markets involves a risk of loss and there is no guarantee that all or any invested capital will be repaid. Past performance neither guarantees nor reliably indicates future performance. The value of investments and the income from them will fluctuate with world financial markets and international currency exchange rates.