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India’s valuations are not “materially expensive” compared to peers but the returns over the next five years could be in low double digits, BlackRock Investment Institute believes.
In its 2025 ‘Global Outlook Report’, the research firm said India’s high price to earnings (P/E) ratio is on account of its relatively strong growth outlook.
The report pegs the corporate earnings to remain strong over the long run, supported by a robust growth and softening of interest rates to 5 per cent, down from the current 6.5 per cent.
“Our preferred valuation metric, the equity risk premium (ERP) - incorporates earnings growth
