India needs reforms like GST to justify valuations: Ashmore

India needs to deliver reforms like the Goods and Services Tax (GST) to justify current valuations feels Jan Dehn of Ashmore Investment Management.

Speaking to CNBC-TV18 on the ongoing GST vote, Dehn said it will be significantly important particularly for long term institutional investors as they like to see reform and this is probably the most profound tax reform India could do.

GST will mean moving to a more single-market structure which is very good for long-term growth potential and that is what institutional investors will look for, he said.

The tactical money is already in the trade and so the risk here is if GST Bill is not passed then it would lead to souring of sentiment, he warned.