India's equity markets have soared in recent years and remain at high valuations despite the recent global equity market corrections. In the course of the past decade and a half, the economy has been transformed. This report takes a step back and attempts to understand these changes - particularly those in political risk and in the growth potential of the economy.
The paper essentially sees near term risks which ciykd create political and economic problems for India in the short term. However, in the long term, we argue that the consensus view on India is still under-estimating its true potential:
-Political instability remains a risk in the near term
-Headwinds to growth in the short term
-Long term growth to accelerate