What does the introduction of India's 4% inflation target mean for markets?

India, the world's fastest growing major economy, is witnessing significant injections of capital as the country opens up to foreign direct investment like never before with a reformist government investing heavily in infrastructure.

As an investment destination, India continues to differentiate itself from the traditional emerging market collective including China, Russia and Brazil. These three countries, particularly the latter two, have rebounded strongly off extreme lows but we believe they are more a speculative trade than a longer-term investment. India's demographic sweetspot, with more than 65% of the population under 35 years old, will be a substantial boost to the economy over the next thirty years and beyond.  As disposable incomes rise, the emergence of the Indian middle class will create the world's ...