Investors must re-examine assumptions about India

WHILE global liquidity lifted all boats like a rising tide during the boom of 2003- 2007, that scenario is unlikely to be repeated again. So, investors need to be more careful now than they might have been before.

One mistake they should avoid is to paint all emerging markets with the same brush. As we look into 2015 and beyond, the potential divergence among growth rates and equity market performance will become starker.

In the Asian context, many global investors look at China and India as the two big potential opportunities. China is far ahead in terms of overall infrastructure development, manufacturing competency, the size of its foreign exchange reserves and its sheer scale. However, India has so far won hands down when it comes to making money for investors in the equity markets compared with China.