Expert view, Nov. 17 -- Anish Tawakley, co-CIO Equity, ICICI Prudential AMC, is positive on the Indian economy. However, he believes softness in demand remains a challenge. He said that while an economic recovery will lift broad earnings, it will not rescue weak businesses that are overvalued. In an interview with Mint, Tawakley shared his views on a potential India-US trade deal, its impact on the market, and the sectors he is positive about, as well as the mid- and small-cap segments. Here are edited excerpts of the interview:

There is no structural problem in the economy. In fact, the macro set-up is very sound.

If we consider all the macroeconomic parameters, including inflation, the current account deficit, and corporate and bank b...