How major infrastructure projects are helping India's weak economy

INDIA

Samir Mehta, manager of the JO Hambro Capital Management Asia ex-Japan fund, says despite India's weak economy, some states are experiencing double-digit growth as the government takes a progressive approach towards infrastructure.

Although India’s 5% GDP figure for the fiscal year to the end of March marked a decade-low, some of the clouds which have loomed over the country over the past 18-24 months have tentatively begun to disperse. May’s inflation number represented a three-and-a-half year low, affording the Reserve Bank of India greater scope for interest rate cuts. The recent collapse in the gold price is to be welcomed, since Indians are keen buyers of gold, which leads to unhelpful foreign exchange outflows. And the fall in wider commodity prices of late is good news for domestic consumers, albeit th...