Investing in India can be complex, and institutional investors may find it challenging to acquire the country at low valuations. The expectation of affordable ownership could result in being perpetually underweight or missing out entirely.
Renowned investors like Warren Buffett understand that quality growth comes at a price, as competitive markets tend to eliminate obvious bargains. While China was once the favored market due to its rapid growth and global export dominance, it has now matured. This, combined with a post-COVID desire for diversified supply chains, presents a significant opportunity for India.
The Indian market is poised for growth, scale, and liquidity, supported by a robust domestic investment community and an expanding fund industry. This fosters a self-reinforcing cycle of investment and performance, making India an attractive destination for investors despite seemingly high valuations.