New Delhi, Sept. 1 -- For years, investors paid up for India. That premium is now rapidly unwinding.

India's valuation premium over Asian and emerging-market equities has shrunk to its lowest since 2018 after nearly two years of underperformance, according to Bloomberg data. The reset has improved its relative appeal, but also raises a question: has the correction created an entry point, or does it signal a lasting shift in global capital?

As of 27 August, MSCI India traded at a 12-month forward price-to-earnings multiple of 19.53 times, compared with 12.42 times for MSCI Asia and 9.31 times for MSCI Emerging Markets. This left India commanding a valuation premium of about 57% over MSCI Asia and nearly 110% over MSCI Emerging Markets. ...