New Delhi, Jan. 30 -- For years, global investors were willing to pay a premium for India. Strong economic momentum, steady policy signals and resilient corporate earnings helped justify a hefty valuation premium over other emerging markets. That cushion started thinning over the last one year.

India's valuation premium has declined sharply from its 2024 peak, even as competing emerging markets stage a sharp comeback. The question now for foreign investors: Is India starting to look fairly valued again?

MSCI India's premium over the broader MSCI Emerging Markets (EM) index steadily rose from 116% in 2022 to 164% in 2024, when Indian equities were riding a strong bull run.

As markets shifted into a consolidation phase in 2025, the valua...