India well-placed to attract emerging market flows: Jonathan Garner

We are recommending clients to shift out of China, Korea and Taiwan, and build up exposures in India, Brazil and Indonesia, says Jonathan Garner

Favourable election outcome, relative immunity to global trade tensions and uncertain environment in China have directed foreign flows in favour of India in recent months. In an interaction with Jash Kriplani, Jonathan Garner, chief Asia and emerging market strategist, Morgan Stanley, elaborates on the triggers that could give further impetus to foreign inflows. Edited excerpts:

What has been foreign investors' stance on India?

For India, we have recommended a 150 basis points-overweight stance (against the MSCI Emerging Market Index weights), which is our largest overweight alongside Brazil. While clients are overweight on India, their overweight is much lower than what it