The 'key man risk' associated with India's economic recovery

‘Key man risk' associated with India in the event something happens to its newest Prime Minister, Narendra Modi, could place India's economic recovery under threat, according to Madhav Bhatkuly, manager of the GAM Star India Equity fund

For the first time in living memory, India is seeing a convergence of several factors which should lay the foundation for a multi-year bull market. The country is on the cusp of a substantial expansionary monetary cycle, with inflation falling rapidly, following an aggressive tightening of monetary policy, and the Wholesale Price index indicating further decline in the Consumer Price index. We have already seen two interest rate cuts of 25 basis points, and India could see another cut of 100 basis points over the next 12 months. While Indian markets have done well over recent months, ...