The Indian government needs to restore confidence following the attacks in Mumbai last month, according to director at Pell Frischmann, Tushar Prabhu this week.
India's booming market has been hit by the global slowdown, and the recent terrorist attacks.
According to director at Pell Frischmann, Tushar Prabhu, "Mumbai attacks have occurred at a time of general slowdown. Indian stocks were already 60% off last January's high, part of a global sell-off of emerging markets as investors dumped perceived risk; the tourist season was already slow, as Westerners had reined in spending fearing a global recession.
"India’s economic fundamentals are strong; fear however still lingers. How long that stays depends solely on how fast the Government acts to restore confidence – by strengthening law and order as well as infrastructureIndeed, analysts expect India's economic growth rate to slow to a seven-year low of 6%, regardless of the attacks."