Excepts for dips during the GFC and other key points of the noughties as well as an earnings drop (while stock valuations remained high) during the course of the pandemic causing ratio inflation, the benchmark has displayed a particularly strong tendency for reversion back into this ratio range over the past eight years.

The Story Continues

It should come as no surprise that experienced “India watcher” professional investors have been left awestruck in recent years. Considering the fact that the Indian government is setting such ambitious pathways for rapid industrial growth while also working on developing the world’s largest healthcare and housing systems for the underprivileged and also making a massive push for renewable energy infrastructure gives many of these veterans the inkling of a notion that an ambitious, intricately-designed and well-balanced paradigm shift is in motion.

On the 23rd of June, during Indian Prime Minister Narendra Modi’s address to a joint session of the U.S. Congress (which received 15 standing ovations and had to be stopped for an applause break 79 times), he said:

“When I first visited the U.S. as a Prime Minister, India was the 10th largest economy in the world. Today, India is the 5th largest economy. And… India will be the 3rd largest economy soon. We’re not only growing bigger but we’re also growing faster. When India grows, the whole world grows.”

It’s entirely logical to consider that nobody has ever aimed to just be at 3rd place. One can wonder if only one decade will be enough for the “New India” story or if there are a few more afterwards. Time shall tell.