Why is India underperforming?

Once we get over current uncertainties, investors will return as India is the only long-term growth story

There is a growing sense of disillusionment with India among international investors. They have been selling stocks for most of last year, and India continues to underperform most other emerging markets (EM) year-to-date. The only large market down more than India this year is Australia. Among the larger EM markets, India is down the most. Many of the fancied mid-cap stocks in India are down 20-25 per cent. The mid-cap indices are down more than 10 per cent in dollar terms. Portfolios of many investors are now actually down on a year-on-year basis.

Why are markets underperforming? What are the issues