We See India as a Relatively Bright Spot

Markets have clawed back some ground after Donald Trump's tariff threats and India-Pakistan tensions rattled sentiment. London-based Vivek Paul, head of portfolio research at BlackRock Investment Institute, tells Puneet Wadhwa in an email interview that while gold remains a useful portfolio diversifier in the current environment, investors should weigh any major moves carefully. Edited excerpts:

- VIVEK PAUL

Some see India as a relatively safe haven for equities. Your view?

We see India as a relatively bright spot, given its limited exposure to the external trade shocks affecting other economies. Goods exports to the US account for less than 5 percent of India's GDP, which cushions it from the direct impact. That said, Indian equities haven't been immune to volatility driven by global trade uncertainty and domestic economic moderation.

The recent US announcement of a 26 percent reciprocal tariff—now paused for 90 days—adds to the noise. But India's lower dependence on exports, a resilient domestic market, and long-term growth drivers like digitization and urbanization offer some insulation against external shocks. Indian policymakers have also moved quickly to resolve trade issues, which could help contain the risks.

Is there any silver lining for global markets right now?