Matthews Asia: India's Structural Challenges

India’s Structural Challenges by Sudarshan Murthy, CFA, Matthews Asia

India has gained more international media attention since Prime Minister Narendra Modi swept into power with a strong majority over a year ago. The victory of this reform-minded leader was expected to kick-start growth. With its large and young population, India no doubt has enormous potential; as China ages, India can emerge as the manufacturing hub of the world. And it is widely expected that India will be the world’s fastest-growing major economy.

However, optimism should be tempered with the knowledge that many of India’s biggest challenges have deep-rooted origins with no easy solutions. India is in need of sweeping reforms in order to realize the full power of its...