'India's dire 2011 market performance should not put off investors'
'Its poor absolute market performance and equally poor relative economic performance has dampened enthusiasm for India. However, this should lead to investment opportunities opening up not closing down.
A 20%-plus local currency loss for Indian equities in 2011 represents their worst performance in decades. It was also branded the most disappointing Bric nation by Goldman Sachs chairman Jim O’Neill, highlighting a poor record in productivity, foreign direct investment and reform. Rather than writing off the world’s most populous country, he says serious leadership is required to ensure India achieves China-style development.
On top of this, India’s growth estimates have declined in recent months, largely due to its high fiscal deficit, weak rupee and ongoing inflation fears.
But the prospects for the market in 2012 and beyond are far healthier than these headline-grabbing numbers would suggest....'
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