India's economy continues to impress

Tai Hui, Chief Market Strategist for Asia Pacific at JP Morgan Asset Management, discusses India's economic performance and the factors influencing its equity market. Despite strong GDP growth driven by services and government spending, and a supportive monetary policy, Indian equities have underperformed in 2025. The speaker attributes this to the impact of US tariffs on Indian exports and high valuations relative to earnings growth. While acknowledging these challenges, Hui highlights India's strong structural growth story, supportive fiscal policy, and the potential for future monetary easing. He concludes that future market performance will depend on signs of earnings growth stabilizing and progress in trade negotiations with the US.