Aberdeen agrees that growth hasn’t picked up as much as people had hoped and the government has limited fiscal scope to spend. Still, the fund is focusing on the long-term effort of changes to the country’s tax structure, plus efforts to clean up the banking system and make affordable housing available.
“We think India has policy responses to the slowdown,” Kaloo said. “Once you start seeing them coming through, people will look at India to see the investment opportunities.”
Here are some excerpts from the meeting:
“Valuation of Indian market is cheaper than before, but it is still not a cheap market. Selectively, we think there is a good value there.”
Long-term benefits of policy changes affecting the property market -- particularly affordable housing -- have a good “multiplier effect.”
India remains a good investment story from a long-term investment horizon, he said.