India: The World Sold It, The Locals Kept Buying

India, tracked by the iShares MSCI India ETF, underperformed with a -8% return versus EEM’s +35% over the past year. The 40+ percentage point performance gap signals investor avoidance, but the underlying reasons challenge surface-level assumptions. INDA hovered near 52-week lows while broader emerging markets rallied, creating a perception of market distress. The article suggests a deeper understanding of India's underperformance may reveal a turning point in its investment narrative.

India was the market no one wanted to invest in. Over the past year, the iShares MSCI India ETF ( INDA ) returned roughly negative 8%, while the iShares