@techreport{NBERw12434,
 title = "The Equity Premium in India",
 author = "Rajnish Mehra",
 institution = "National Bureau of Economic Research",
 type = "Working Paper",
 series = "Working Paper Series",
 number = "12434",
 year = "2006",
 month = "August",
 URL = "http://www.nber.org/papers/w12434",
 abstract = {In this article we examine the Equity Premium in the Indian context and review the related literature.  The equity premium is the returned earned by a well-diversified stock portfolio in excess of that earned by a risk free security such as a Treasury Bill. Consistent with U.S. experience we find that the Indian equity premium has been quite high in the post 1991 period, averaging 9.7% above the corresponding risk free security.  It is difficult to justify such a premium based on theoretical considerations.

The article is an entry prepared for the Oxford Companion to Economics in India edited by Kaushik Basu},
}