In a chat with ET Now'stalks about what he makes of the rise with India theme and how strongly he believes in India's future. Edited excerpts:I think there are still three conflicting issues going on. First off all by definition, markets have had a very strong growth with very low volatility and at some point that will come to an end and the more it goes on the more value driven investors and commentators think well we are mostly closer to the end of the stocks and that makes sense. Secondly of course with the signs of improving economic recovery in much of the developed world even though it is Japan publishing remarkably strong figures earlier this week, we have the threat of QE which has helped the world economy markets in some cases, Japan for over a decade, but you know there is certainly a few years possibly stalling to come to an end in more and more places and of course it has already ended in the US. So better for those things or I guess why some people feel the markets may be coming to the end of the rally. And the third thing which is contradictory is that we are seeing in most parts of the world more and more signs of improving economic momentum and typically during that phase equity markets do pretty well, so and I think it is particularly true for many so called emerging markets which do not look that expensive relative to the developed world.I do not like the idea that all emerging markets should be regarded as one and the same but nonetheless people still do but it is very difficult to generalise. That said secondly I think most so called emerging markets are relatively cheap compared to particularly the United States. So from a value perspective in a rising overall global markets I would expect many so called emerging markets to continue to outperform the developed markets. Thirdly, however, as and when the Federal Reserve Board, if it does start sending signs of accelerating tightening more, the markets currently think I would imagine that would be a period where a number of so-called emerging markets, possibly including India might go through more volatile phase and quickly that it is not clear to me that we are there now the Fed still seems to be sending a very strong message that they are going to be very cautious in raising interest rates.It seems to me in many ways India and its markets continue to be in almost the perfect storm, but we have reasonably benign commodity markets, so oil prices not really doing a great deal and certainly not rising much often because India is such an oil importer as you know when we go through periods of very rapidly rising oil prices it causes problems with imported inflation etc. etc. we are not seeing that and of course we have such a benign environment in global interest rates markets so these two big external factors are being very supportive of India and of course even though there are plenty of structural challenges in India there has been some progress on reforms, goods and services tax for example, and so all of that and so for the fact the India grows these days by probably more than China, it is a pretty favourable general background for India.We will only find out afterwards. But my suspicion is that India is in a slightly better position to withstand an adverse move in global markets. But we should never underestimate the connectivity of markets around the world, very tangential point. I still remember the 1994 bond market rout as though it was yesterday and I happened to be in Australia and there was nothing going on in Australia but that week Australian bond yields rose by 100 bps purely because of things that were going on in the US. So I would be very hesitant in saying that markets can ignore things going on elsewhere in the world just because of their own fundamentals are good. But that said, I think the Indian market is in a better position than it has been to withstand the external shocks.In the past 20 years India shifted its growth performance from what used to be affectionately, or quite rudely often called the Hindi rate of growth which was about 3.5%. India is being growing now at average the past one year by probably around 6.5%. And Modi deserves quite a bit of credit for the past couple of years of that of course, but some of it has gone on before reflective of better policy from a number of governments and the good job that the central bank has done particularly under its previous governor I would say. But what I think Modi has started to do is partly because of his political popularity is to begin to deal with some of the even bigger challenges such as trying to make from the economic perspective India more of a genuine economic one nation and that is of course why the goods and services tax is so important to make it essentially a unified economic market around the whole wonderful country. And that because of the demographics being so favourable if India could unleash more private sector investments and improve the rate of public sector investments as oppose to wasted public sector spending, it is quite feasible that India could grow by 9% or even 10% for the next 10 to 15 years because it has such favourable demographics. And I think Modi is taking India in the right direction.One of the reasons why I am bit more relaxed than many other commentators is that we do not have the mood around the world from what I can see of rampant optimism about equity markets. We are not out of that phase yet and so I think global markets notwithstanding a bit more volatility, probably got quite a bit more upside in them despite some valuations. But to counter your specific question it is a very tough one but a good one and I think the thing is that the Indian market has primarily received a lot of support in the past three years from remarkably benign global circumstances of essentially repeatedly surprisingly low inflation which is allowed for US and other monetary policy to be so benign and it has made easy for markets with good local returns to potentially higher future returns to do so well. And when I would say to sustain that into a whole new territory,linked to what I have said a few minutes ago, I think particularly now that Modi has embarked some reforms with the things like GST and to some extent also the circle demonetisation last year, it has now opened the idea to investors that Modi is prepared to do all with big structural challenges for India’s future.So of course I have to answer that somebody notwithstanding what I have said right at the start, I have been looking at markets for over 35 years. I mean usually something that none of us can identify and I say that of course with all this noise about North Korea taking place so who knows, but that said if it was something that we can identify, I think because of the enormous rise of China and the role that China has played in the world economy is something when really-really badly wrong with China, I will imagine that will be quite a problem for many-many markets around the world because of China’s economic importance. But let me just add quickly - I do not see any signs of that in the foreseeable future.