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As of March 18, India has reported fewer than 160 coronavirus infections, which is a surprisingly low number for a nation of 1.3 billion people. Yet, India’s high population density, patchwork healthcare infrastructure and air pollution problem heighten the probability that India could become the next global hotspot for coronavirus. If a health crisis does erupt, it may destabilize the country’s already weakened financial system, triggering even bigger capital outflows from Indian assets than we’ve seen year-to-date.

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