India may be one of the world’s most compelling growth stories—but investors expecting a smooth ride should think again.

Valuation guru Aswath Damodaran says the promise of growth is real, but the unpredictability of democracy, policy shifts, and market overvaluation make India a market that rewards patience, not blind optimism. Advertisement

In a podcast with ET BFSI, Damodaran said India’s long-term growth is driven by fundamentals: a massive, increasingly affluent population generating real demand across sectors.

“More refrigerators, more cars, more two-wheelers—that creates growth,” he noted.

But with that opportunity comes volatility. Damodaran warned that investors must accept economic corrections as part of the cycle. “Recessions are just the economy’s way of saying you overrea

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