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from Expert Zone:

India’s next foreign policy

(This piece comes from Project Syndicate. The opinions expressed are the author’s own)

A guest holds the flags of the United States and India and a program in the East Room at the White House in Washington, November 24, 2009.     REUTERS/Jim Young/FilesNext month, India will complete its marathon election. A new government is expected to assume power at the end of May, and, if the polls prove correct, the Bharatiya Janata Party (BJP), which has named Narendra Modi as its prime ministerial candidate, will lead that government.

With India’s sluggish economic performance having rightly dominated the campaign, the question of what foreign policy the new government should pursue remains unanswered. Whatever the specifics, one imperative is clear: India must move beyond its allegiance to the Non-Aligned Movement (NAM).

The muddle that NAM diplomacy causes is perhaps best reflected in the Congress-led Indian government’s recent quasi-endorsement of Russia’s annexation of Crimea. Prime Minister Manmohan Singh and his government appear to have overlooked that China covets Indian territory and may thus be pleased that Russia has set a precedent for a powerful country to thumb its nose at international law and seize part of a neighboring country.

from India Insight:

They say every vote counts, but mine wasn’t

(Any views expressed in this article are those of the author and not necessarily those of Thomson Reuters Corp.)

Fifty-four percent of Bangalore's eligible voters showed up at the polls on April 17, a disappointing number considering the high turnout in some states. I was not among them, but it was not for lack of trying. Despite doing everything correctly, my application never went through.

from Breakingviews:

Review: India’s Singh wasn’t king, Modi could be

By Andy Mukherjee

The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

Everything except the title of Sanjaya Baru’s “The Accidental Prime Minister” has invited controversy. And the title escaped opprobrium only because Manmohan Singh, who has never won an election, was the first to acknowledge that his elevation to India’s top political job was an accident of history.

from Expert Zone:

In defence of the defensives: Why IT, pharma stocks are not pariahs

(Any opinions expressed here are those of the author and not of Thomson Reuters)

Expectation that the ongoing general election will throw up a stable government has spurred a return to risk in domestic equities. The consequent rally has meant those favoured defensives of the sluggish times - information technology and pharma stocks - received a shearing.

The CNX IT index shed 7.8 percent and CNX Pharma 10.1 percent in March - even as the benchmark Nifty surged 6.8 percent.

from India Insight:

Interview: Nitin Gadkari on the election, BJP’s priorities and Amit Shah

(This article is website-exclusive and cannot be reproduced without permission)


By Shyamantha Asokan

Nitin Gadkari is a top leader of India’s Hindu nationalist opposition party, which is forecast to emerge as the front-runner in the country’s mammoth general election. A series of opinion polls this year say that the Bharatiya Janata Party (BJP), led by prime ministerial candidate Narendra Modi, will win the biggest chunk of the 543 parliamentary seats up for grabs. Results are due on May 16.

Modi and the BJP have been wooing voters with promises to rescue India from its slowest economic growth in a decade, leading to much speculation over the party’s exact plans for economic policy. But critics say the party, and Modi in particular, could be a divisive force along religious lines.

from Breakingviews:

Diageo throws money at Indian empire-building

By Robert Cole and Una Galani

The authors are Reuters Breakingviews columnists. The opinions expressed are their own.

Diageo is engaging in some expensive empire-building in India. An under-powered tender offer meant an earlier attempt to take control of Vijay Mallya’s United Spirits was only partially successful. Now the world’s biggest spirits maker has more than doubled the price it is willing to pay, offering $1.9 billion to raise its stake to 54.8 percent from 28.8 percent.

from John Lloyd:

Modi: Democrat or divider

India’s 815 million voters started the five-week voting cycle earlier this week. It’s already being celebrated as a triumph just for taking place -- “the largest collective democratic act in history,” according to the Economist.

The winner will matter. India now punches far below its demographic weight -- its 1.24 billion people are served by just 600 diplomats, about the same number as the Netherlands. The United States, with 314 million people, has 15,000. But that apparent lack of interest in making a mark on the world seems about to end.

from India Insight:

Young professionals in Bangalore favour Modi’s promise, shrug off riots

As far as Vinod Hegde is concerned, Indian prime minister candidate Narendra Modi bears no responsibility for the 2002 Gujarat riots. More to the point, Hegde doesn't care.

Hegde, a 26-year-old stockbroker in Bangalore, said that for people like him, the Gujarat chief minister is the only choice to lead India after countrywide parliamentary elections that began this week.

from Global Investing:

Buying back into emerging markets

After almost a year of selling emerging markets, investors seem to be returning in force. The latest to turn positive on the asset class is asset and wealth manager Pictet Group (AUM: 265 billion pounds) which said on Tuesday its asset management division (clarifies division of Pictet) was starting to build positions on emerging equities and local currency debt. It has an overweight position on the latter for the first time since it went underweight last July.

Local emerging debt has been out of favour with investors because of how volatile currencies have been since last May, For an investor who is funding an emerging market investments from dollars or euros, a fast-falling rand can wipe out any gains he makes on a South African bond. But the rand and its peers such as the Turkish lira, Indian rupee, Indonesian rupiah and Brazilan real -- at the forefront of last year's selloff --  have stabilised from the lows hit in recent months.  According to Pictet Asset Management:

from Breakingviews:

Modi win is blow for Tesco, good for investors

By Andy Mukherjee 

The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

A win for Narendra Modi would be bad news for Tesco and its rivals, but good news for other investors. The Indian opposition leader’s party says it won’t allow foreign supermarkets to enter the country if it wins the general election. But that is just one discordant note in a manifesto that is sweet music to financial markets.

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