India has left a bad taste in some investors mouths. Between massive power failures, inconsistent policy and the risk of becoming the first BRIC country to lose its investment grade status, investors are prompted to re-evaluate their feelings about India. But some may ask, is it wise to ignore the 6% growth in India while other countries are trying to stay out of recession? With India’s population being 1.2 billion and 50% being under the age of 25, domestic consumption is India’s most attractive feature. The prevailing view is that no matter what happens globally, local consumerswill provide India’s economy with a protective buffer.
Investors should stay put. The government is now making a lot of optimistic signs to kick-start the economy again. There have been a lot of positive movements in the policies on environment, mining, and foreign direct investment. With that, things will only move in a positive direction. Mohit Arora says, like marriage, India is an investment for those willing to make a long-term commitment and stick to it. Investors should stay put in our India fund and focus on India’s long-term potential.