Ashmore’s Medeiros says “Everybody loves India”. Here’s Why

growth story among emerging markets, according to Gustavo Medeiros, Head of Research at Ashmore Group, a global investment manager. While the firm had taken a cautious tactical approach over the past year, it is now gradually rebuilding exposure to Indian equities.

Speaking in an interaction with ETNow, Medeiros said, “Absolutely, the world loves India. It is the most exciting structural story in emerging markets.” He added that India's appeal has grown significantly over the last decade thanks to “economic policies [that] have been much more pro-market.”

Despite this long-term confidence, Ashmore had reduced its India exposure in recent months.

“Even though we like India structurally, over the last 12 months or so we kept a tactical lighter exposure. In many equity portfolios, we are actually underweight India for the first time in a few years,” Medeiros explained.

However, the recent market correction prompted a shift in stance. “We have used this correction that we have seen to start adding exposure again to India.”

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Discussing the valuation landscape, Medeiros acknowledged that premium pricing is often a feature of structurally strong economies. “You would not be able to buy stocks overall at cheap levels of valuations. So yes, India still trades at a premium to emerging markets, but it is a much smaller premium than it was before the correction,” he said.

Medeiros highlighted two powerful themes shaping India’s long-term story: “Inclusion of women on the labour market and the ability of India