India has underperformed its emerging market (EM) peers quite dramatically over the past three months. Indian markets are down about 30 per cent (in dollar terms) compared to 15 per cent for the broader MSCI EM Index. The underperformance, in my view, is linked to the severe and extended lockdown—the most comprehensive globally—and the inability of the government to support the economy with significantly enhanced spending. Given our slowing economy, we were quite constrained fiscally even before the crisis, and the lack of financial flexibility is now hurting. Global Investor.....

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