"As you have so rightly pointed out all countries suffer varying degrees of corruption and I would go further to add that most individuals would be corrupt if they had the chance. The highly discretionary method of all government approvals in India means that every bureaucrat has every chance. For example, to open a restaurant, in India, needs the approval of no less than 16 government departments. This adds greatly to the cost of doing business in India. This hidden cost is easily absorbed in boom times but becomes agony in a slowdown. The recent outcry against corruption highlights the difficult times Indians find themselves in.

"Personally, I am deeply concerned about corruption but what worries me, far more, is the ineptness of the government. The recent volatility in prices of agri products-which hurts every single Indian, some much more than others-makes it clear that the government has been barking up the industrial growth tree, for just a bit too long. It appears that the vaunted objective of the government is to convert the whole countryside into one huge industrialised zone in the name of 'development'. The huge increase in land prices has made this thinly disguised land grab, highly lucrative. Small wonder this has triggered anger in the countryside, editorials such as this one and car stickers such as the one on my aunty's car: 'don't steal; government hates competition'.

"Surely the simpler way is to make the agri sector productive which will bring prosperity to 80% of Indians dependant on the agri sector.

"In the old days Indians used to tune in to BBC if they wanted to get news ahead of time. Surprisingly, it does appear BBC is considerably behind the curve, when compared to the Indian media, with respect to reporting the 'publicised' corruption scandals. Indian media has done well, in this respect, but this has nothing to do with the independence of press - quite the opposite actually: Much of the media is owned and controlled by politicians, many of whom are in the opposition. However, I find the end result benefiting the common man.

"Governance is definitely a sentiment driver but what drives stock prices is earning growth and PEs. Both move inversely to the cost of capital, which appears to be rising in the short term. After the recent scorching bull market some temperance is to be expected but nothing that would justify exit from the Indian stock market."

David Fuller's view Thank you for this very informative email. Your aunty sounds like a colourful character.

My impression of your prime minister is that he is a highly intelligent and honourable man, who is now understandably tired and has earned a restful retirement.

I agree with your conclusion on the Indian stock market.