Why Investors Should Be Cautious About India

While the world's largest democracy is an important player on the world stage, India has never quite managed to achieve its full economic potential due to over-regulation, lack of national infrastructure, and political corruption. The prospect of free market reform under Modi is enticing for the investment community and could open the floodgates to a lot more capital, but before investors in the U.S. and elsewhere dive in too quickly, they should consider the risks still inherent in the Indian economic landscape as well as in Modi's government more carefully.