Finding India's chosen few

INDIA

Only the very fittest firms can survive - or benefit from - India's challenging economy. Sunil Asnani, co-manager of the Matthews Asia India fund, outlines the areas where they operate.

One of the main arguments we hear against investing in India is that the country’s tough macroeconomic environment results in a high cost of doing business. Many of the challenges are largely down to the country’s own actions, with seemingly endless government approvals, a high cost of capital and an uncertain regulatory environment that make it difficult for businesses to formulate long-term investment plans. To make matters worse, some of the complexities in doing business in India have created loopholes that can tempt entrepreneurs to cut corners and fall into the trap of unduly in...