Why India still offers an incredible opportunity to foreign investors
By Toby Lawson, Chief Country Officer and CEO Societe Generale India
At times of acute geopolitical uncertainty, international investors tend to pull in their horns. When interest rates rise, they generally repatriate assets, fleeing emerging markets in particular. Yet this is precisely when those who hold their nerve and direct funds into areas with sound fundamentals can lay the basis for long-term outperformance -- and few countries have sounder fundamentals or show greater promise than India.
It starts with a stable, reform-minded government. Indian Prime Minister Narendra Modi’s conservative Bharatiya Janata Party (BJP) has been in power since 2014 and launched landmark reforms to break up the red tape and cumbersome bureaucracy of India’s ‘Licence Raj’, notably going after black money by encouraging electronic platforms in lieu of cash as an offshoot of demonetisation and the introduction of Goods and Services Tax (GST).
This article was first published in the online version of The Economic Times. Read the full article.