Spencer white isn't convinced. Investor jitters over India have calmed considerably since the Indian National Congress party installed well-known reformers in top posts after its May 13 election victory over the right-wing Bharatiya Janata Party. But White, chief Asia equity strategist for Merrill Lynch & Co., has still cut the India exposure of his emerging-market funds from 6.5% to 4.5%. For the past year, "India has been the jewel in the crown," he says. "Its attraction was not only great companies but also a government that was creating more options for foreign investors and moving away from running state assets." Now, White fears, India will slow privatization and reform of stifling labor laws.
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