The Beginning Of India's Transformation

India has had a strong start to 2017. After a shaky period at the end of 2016 when the reformist government took the radical step of withdrawing 86% of the currency from circulation overnight to tackle the ‘black economy’, economic growth has recovered and equities have rallied.

Modi’s reform programme was given a huge vote of confidence in March when it won a victory in the state of Uttar Pradesh, India’s most populous state with 200 million people. Modi’s BJP party had not won in the state for 15 years, yet won 80% of seats this time round. With the next national elections due in 2019, Modi appears likely to win another term in office and have the time to make real change.

We believe now is the most exciting time to be investing in the country since we launched our first India-dedicated investment strategy in 1998. India is turning a corner. Modi and his BJP party are executing big bang reforms and sweeping away the old government paralysis. As they do so their popularity is growing.