In recent times, India has been impacted by global challenges, said Edward Evans, Ashmore Investment Management.

Speaking to Udayan Mukherjee as part of special series 'London Eye', he said in near term, India has been seeing the brunt of volatility of flows.

Evans said expectations for India in 2018 are the highest as they have been for several years.

According to him, earnings expectations for India is driven by the banking sector.

"Concerns over the sustainability of global liquidity in US dollars, which has very much peaked investors concerns and has impacted India because the country has a current account deficit of around 2% and high energy prices are putting pressure on your current account deficit,” he added.

He said Indian banking sector is quite constructive and has some very high quality private banks.

Speaking on public sector banks, he said they are going through a period of change and recapitalization is certainly helping them.