Indian assets are poised for growth in investors’ portfolios

India’s economic and demographic outlook points to strong growth over the next decade and suggest Indian equities could over-perform main equity markets. Investment is expected to drive the recovery, with government policies and initiatives playing a key role. In the equity market, investor sentiment is shifting to value stocks, cyclical industries, and mid- and small-caps. The outlook for fixed income is also favourable, with potential for positive real returns this years.