Govt measures don't address slowing consumption demand, says Matt Wacher

The reduction in the corporation tax will boost earnings, but for sustained growth there needs to be a revival in consumption demand, says Matt Wacher, chief investment officer (Asia Pacific), Morningstar’s Investment Management Group. In an interview with Samie Modak, Wacher says the investment manager is underweight on India. Edited excerpts:

Developed markets have been outperforming emerging markets (EMs). Do you expect this trend to continue?

Over the past 10 years, EM returns have trailed developed market returns. Indian equities have underperformed US equities, even in local currency terms because of external concerns such as trade wars and rising US interest rates,