410. Why investors could be misreading India’s boom

India has gone from emerging-market darling to a source of funding for the booming semiconductor trade, despite its domestic economy continuing to grow rapidly. Our guest, Andy Draycott, manager of the Chikara Indian Subcontinent fund, explores why foreign investors have withdrawn billions from Indian equities, whether concerns about the rupee and AI are justified, and why rising household wealth could transform consumption. We also look inside a concentrated portfolio targeting India’s domestic growth story, including private banks, quick commerce, hotels and aviation. Finally, we discuss India’s enormous manufacturing opportunity and why its growing importance to the global economy could ultimately bring international investors back to the market over the coming years.

What’s covered in this episode: 

• India’s economic and market disconnect
• Why foreign investors are leaving
• The semiconductor funding effect
• Is India losing the AI race?
• The outlook for the rupee
• India’s hidden household wealth
• The emerging middle class
• McDonald’s enormous growth runway in India
• Why the portfolio is concentrated
• Private banks taking market share
• India’s mortgage opportunity
• The quick-commerce revolution
• The company offering eleven-minute deliveries
• India’s travel boom
• Rising demand for hotels and flights
• India as the next manufacturing hub

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Please remember, we’ve been discussing individual companies to bring investing to life for you. It’s not a recommendation to buy or sell. The fund may or may not still hold these companies at the time of listening. Elite Ratings are based on FundCalibre’s research methodology and are the opinion of FundCalibre’s research team only.