IN 2013, when foreign capital suddenly rushed out of emerging markets, India was one of the worst-affected countries. There were plenty of reasons for investors to panic. GDP growth had slumped. The public finances were a mess. And inflation was hovering around 10%. A year earlier a power cut had plunged hundreds of millions of Indians into darkness.
It is a testament to the country’s enduring promise that within a year investors were once again scrambling for a stake in its future—this time tempted by the pro-growth promises of Narendra Modi, who won a resounding victory in elections last May.