India is on a similar growth trajectory as China, with an extra 40 bps of year-over-year economic growth, but with a policy mix of fiscal, monetary, and inflation-mitigating forces to reduce the country’s credit risk. India's goods and services tax (“GST”) is a fiscal reform effort that creates a long-awaited unified national sales tax system to greatly simplify the process of inter-state commerce to better incentivize business activity and eliminate the perverse incentives associated with the pre-existing multi-levy system. While the GST is still far from a done deal, it is likely to get finished with widespread support. Naturally some Indian states will benefit financially from the policy (e.g., mostly the northern and eastern parts of the country) while some will not (e.g., central and southern states), so a compensation system to the “losers” will likely need to be worked out.India’s rebalancing from an investment-focused to a consumption-focused economy is also expected to mitigate the need for credit growth moving forward. Moreover, the rebalancing process is also expected to boost GDP as high-growth consumption begins to take a greater percentage of the overall GDP calculation. GDP growth is currently at 7.1% growth Y/Y, but absent of a bad recession -- and whatever systemic risk China provides -- India could conceivably get up to 8% by 2018. A strong monsoon season has also reduced inflationary pressure in the economy through its effect on increasing food supply and putting a control on prices. Accordingly, India remains, in my view, the best bet in Asia-Pacific with its strong degree of pre-existing growth, slight upward growth trajectory, and lowest degree of credit risk. Yet, on the sovereign debt front, it also yields the most with respect to ten-year bond yields at nearly 7%.