Vikas Khemani, the founder of Carnelian Asset Management, has expressed optimism about the growth of India's earnings. He predicts a 14-15 percent increase over the next two years, despite potential short-term slowdowns.

During a quarterly call with investors, he dismissed concerns about declining earnings and emphasized that the reallocation of global funds to China has largely concluded. Khemani explained that the perception of foreign investors withdrawing from India due to economic concerns is misleading. He highlighted the importance of understanding fund managers' strategies, stating that those who are underweight in a strong-performing market often reallocate to avoid underperformance. This has contributed to the recent capital shifts towards China, especially as its market has experienced significant growth.