Archive · 2 Sep 2025
India's Market Attractiveness Rebounds, GST Decision in Focus
India's market is looking better, according to an investment head.
After some investors left, the market is nearing attractive levels.
A big tax decision could change things; a tax cut might help companies that sell things, but hurt those that build.
Domestic spending is going up, but these numbers need careful consideration.
India hasn't done as well as other markets, but it's still good in the long run.
Right now, everyone's watching China, but India is expected to catch up.
Florian Neto sees favorable valuations for India after recent foreign outflows.
Approximately $5 billion has exited this quarter, with domestic inflows supporting markets.
Neto highlights the goods and services tax (GST) decision as the next major investor trigger.
A GST cut could benefit consumption sectors but potentially hurt capex-sensitive companies.
Global investor focus is currently on China's market performance.
- Who
- Florian Neto, Head of Investments Asia at Amundi
- What
- Shared insights on India's market attractiveness and GST impact
- When
- The next 12 months, short term
- Where
- India
- Why
- Due to favorable valuations, potential GST changes, and improving domestic consumption
GST Cut Impact on Consumption
GST Cut Impact on Capex
Sectoral Impact
GST Cut Impact on Consumption
Consumption-led sectors, such as autos and packaged foods, could significantly benefit.
GST Cut Impact on Capex
Capex-sensitive companies might be hurt by tightening fiscal space.
- Foreign Outflow (Q)
- $5 billion
- GST Concern
- Cut may boost consumption but hurt capex-sensitive companies
- Market Status
- India underperformed MSCI Emerging Markets last year
- Focus
- Global investors are shifting towards China
