Mid caps will help India rebound after shaky year

India has faced a number of headwinds this year but the country still offers plenty of investment potential, writes Nitin Jain, principal fund manager at Kotak Mahindra (UK).

For those who follow India infrequently, it might be easy to assume all is well – the country has reported quarterly GDP figures of 7.8% in Q1 and the IMF predicts growth for the year will be 8.2%. These figures look impressive when compared against global growth rates. It is true the factors supporting India’s growth, such as its young, relatively skilled workforce, strong domestic consumer consumption and continuing investment in infrastructure are all still in place. However, 2011 has proved to be a challenging year for investors and volatility has been a feature of the markets. Valua...