Markets Over-Trusting US-India Trade Talks: Axis Bank Economist Neelkanth Mishra

• Neelkanth Mishra of Axis Bank expresses surprise at market's intense concern over US-India trade talks, calling it 'over-trusting'.
• Mishra and UBS's Gautam Chhaochharia emphasize India's robust fundamentals and earnings growth as key drivers for capital flows, not trade headlines.
• Foreign Direct Investment (FDI) repatriations have increased from USD 20 billion to USD 50 billion annually, indicating growing investor confidence.
• Sajid Chinoy of JP Morgan warns about underestimating Trump-era tariffs, but stresses India's domestic consumption and credit growth are more critical.
• Accelerating credit growth and sustained domestic demand are identified as crucial for private investment, corporate earnings, and India's long-term growth.

Why It Matters: Market overreaction to US-India trade talks overlooks India's strong economic fundamentals and domestic growth drivers.