"India still remains our most promising story," said Rahul Chadha, co-chief investment officer at the firm.
The India story has become all the more compelling during the past 12 months, he said, as markets are underperforming.
"You want to buy a good asset when there is disbelief, when there is underperformance, where actually, execution on the ground is better and fundamentals are improving," he explained. "In India monetary easing has been close to 175bps of rate cuts over the last two years. That gives impetus to the economy- that’s clearly positive."
Modi's reforms and the "Make in India" program that aims to boost the manufacturing share in GDP to 25% and create 100 million new jobs is key to the positive developments in the country, he commented.
To reach these goals, India will need to attract foreign direct investment of $0.5trn in incremental investment, said Chadha, who pointed out that the Modi-led government focused on 'minimum government, maximum governance.'
The 2016/17 Union budget is a move in the right direction, focusing on fiscal discipline, reviving rural India and process simplification and institutionalization, according to Chadha. With the promising demographics as a backdrop, you need stable leadership, job creation, strong institutions and then multinational companies will fill in with technology, said Chadha.
Chadha manages a number of the firm's Asia Pacific equity portfolios and the firm's India funds for Mirae Asset's US and Luxembourg-domiciled funds.
Other positive reforms and developments include the unique ID key tool in Modi's Financial Inclusion plan with 87% of the country's adults now enrolled, the bankruptcy law, State Electricity Boards restructuring and positive easing of FDI norms.
Meanwhile, corporate results indicate urban consumption recovery, and good monsoons should revive rural demand, in Mirae's view. Post a 15% fall in one year, the market is less over-owned while on ground execution has improved. In view of this, Mirae continues to be overweight financials, autos and pharmaceuticals in India.
But Chadha also pointed out that in markets, "you don’t fall in love with a stock or a country, because markets are ruthless – whatever is right will come out. You have to look at the facts."