The Biggest Risks Facing Indian Investors Right Now
Aayushi Jain
US Trade Tariffs and Deglobalization- Reimposition of US trade tariffs under President Trump and deglobalization trends threaten global supply chains, impacting India's economy
Strong US Dollar and Rising Yields- A robust US dollar and increasing US bond yields reduce foreign institutional investments in Indian markets, pressuring asset prices.
High Domestic Valuations- Elevated valuations in Indian equities, coupled with weak earnings, deter foreign investors, increasing market correction risks
Slowing Credit Growth- RBI's tightening policies have slowed credit growth, dampening consumption and increasing non-performing assets, particularly in microfinance
Geopolitical Tensions- Ongoing conflicts, such as Russia- Ukraine, create global economic uncertainty, indirectly affecting investor sentiment and market stability in India