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Finding Quality Growth in Emerging Markets with Ian Smith
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India's long-term growth drivers and valuation challenge
At 45:30 · chapter starts 42:00
India offers the best long-term EM ingredients — young population, low credit penetration, pro-business government — but has underperformed EM by ~90% since September 2024 as the anti-AI trade. [1] — Ian Smith "India has everything for long-term growth: young population, low income per capita, low credit penetration, pro-business government. But it…" 44:00
India has everything for long-term growth: young population, low income per capita, low credit penetration, pro-business government. But it's a net energy importer with no AI supply chain exposure — making it the anti-AI trade and punishing it with nearly 90% underperformance vs. EM since September 2024.
India's equity market has underperformed the broader EM index by almost 90% since approximately September 2024, largely reflecting prior overvaluation and EM's strong AI-driven rally.
