Keep a cool head when it comes to India

India is an emerging market with great potential, but investors also face risks. There are some 870 million inhabitants in India, and the economy has seen growth averaging 4% set to rise to above 5% in the five years from 1994. Problems include the volatility of the ruble and of Indian share prices, and government liberalization policies may be reversed especially if there are serious balance of payments problems. Investors should seek more defensive holdings but retain their investments in India in Oct 1994. For new investors, rising prices may be a deterrent.