Is India the next big investment opportunity?

Fund manager Steven O'Hanlon and economist Paul Wharton discuss the outlook for the country

Manager view: Steven O'Hanlon Data is finally turning favourable from a bonds perspective. Wholesale inflation has been the biggest worrying factor and very rightly so. Food price shocks along with growing economic activity has led to headline inflation numbers going way above the Reserve Bank of India's (RBI) comfort levels and thus the strong monetary response. The government believes inflation will ease to around 6.5% by March 2011, an extremely positive prognosis for the bond market and the economy as a whole. We feel 6.5% is a little optimistic and we feel inflation will stay a li...