Indian parliament to cast votes on foreign investment in retail

Manufacturing PMI hitting the highest level in 5 months is a hopeful sign.

According to BBVA Research, with recent activity indicators signaling signs of an emerging recovery in Q4 (November manufacturing PMI posted its highest level in five months to 53.7), renewed reform momentum is helping to improve investor sentiment regarding India, with the forward-looking business expectations index improving notably last month.

"The Indian parliament will be voting on the government’s proposal to allow foreign capital in multi-brand retail. While a positive outcome is widely anticipated, a convincing victory for the government would provide a big boost to the reforms process going ahead," BBVA said.