India's domestic story stands out amid mixed Asian picture

Some readers will be aware of our thoughts on China and its credit­fuelled investment bubble. But it’s not all doom­and­gloom in Asia, with India a case in point. 

India’s demonetisation policy introduced in the fourth quarter of last year has clearly, and will continue to, cause a temporary slowdown in the economy.

India’s demonetisation entailed scrapping all 500 and 1000 rupee notes, approximately 86% of all banknotes in circulation. The measure was aimed at curbing the black market.

However, we don’t think it will cause any long­term damage to our thesis for the country. We see the slowdown very much as cyclical and recent company visits in India have confirmed that the economy is starting to normalise.