India is struggling to maintain its growth momentum

India is struggling to maintain its growth momentum and needs further fundamental reform in order to address its underlying problems. The recent reforms that have included removing certain bank note denominations as legal tender, the introduction of a uniform national goods and services tax and the re-capitalisation of state owned banks have all been helpful but together insufficient.

Other reforms are needed such as limitations over environmental pollution, corruption, income inequality and tax evasion. Despite these issues Indian equities, while having been volatile in recent months, may still offer decent returns if earnings forecasts are fulfilled.

---

Comments are closed.