2024-07-25 11:18:25 ET
Summary
- India's updated Budget has roiled equity markets.
- Still, the fundamental long-term investment case remains intact.
- In the face of near-term valuation pressure, Invesco's India ETF stands out.
Now that India's election is done and dusted, all eyes are now on how 'Modi 3.0' will play out. Prime Minister Modi's initial cabinet picks suggested continuity, and to some extent, this was reflected in the new government's first Budget . Fundamentally, though, there were some key shifts this time around, with some notable political compromises (e.g., outsized allocations to ally states) and a greater emphasis on social demands (e.g., higher subsidies and welfare spending). What has stayed constant, though, is a commitment to capital spending (new target up to +7.3% YoY), as well as an emphasis on fiscal consolidation (deficit target cut to 4.9%)....
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PIN: A Defensive Play On India's Post-Budget Blues