Carmignac's Park: I have learned to be ready for disappointment when it comes to India

Concerns about oil, currency and politics

Jayna Rana
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David Park of Carmignac
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David Park of Carmignac

David Park, co-manager of the €1.2bn Carmignac Emergents fund with Xavier Hovasse, has said despite India's "huge potential" he is concerned about its fragile currency and the potential for volatility ahead of next year's general election, which makes the country a difficult investment case.

Speaking at the company's annual media event last month, Park said he is most concerned about the impact of external factors on the country over the next 12 months, such as volatile oil prices and inflation. He said: "India's potential is huge and everyone else will agree. But I have learned to always be ready for disappointment with India in terms of growth delivery. "Every $10 movement of oil deteriorates the country's current account deficit by around 50 basis points and moves inflation +/- 30bps. If it surpasses $80, the deficit will stand at around 3% and inflation will be above ...

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