New Delhi, Oct. 13 -- Few markets are as unloved as India's right now. In the 12 months to August, the MSCI India index lost about 2% in dollar terms. The broader emerging-market index gained 36%. The Sensex is still below the peak it reached in September 2024. Talk about India these days is mostly about what it lacks. The gloom is not baseless. Three things weigh on India. None of them is of its own making.

The first is an unsettled relationship with the US. India has faced American tariffs and sanctions. Portfolio and direct investors alike see that as a risk.

The second is energy. India's landed cost of crude averaged about $116 a barrel in September, after dipping to about $82 in July. Supply disruptions and higher freight and insur...