The outlook for sluggish India

INDIA

Rajendra Nair, co-manager of the J.P.Morgan Indian investment trust, investigates at how India is dealing with its challenges.

Emerging markets have fallen out of favour in 2013, and investors in India have felt the pain more than many other countries. In the short term, there are two challenges the Indian economy and stockmarkets are facing. One is the global macro environment, which is putting pressure on all emerging markets. The other is troubles at a domestic level. Over the summer, the global macro environment was dominated by concerns about the US Federal Reserve tapering its QE programme. While the expected tapering failed to materialise at the committee meeting in September (and has perhaps been d...