India’s recent underperformance and earnings downgrades have largely been driven by softer consumption, which accounts for nearly two-thirds of the economy. We believe the groundwork for a turnaround is already in place – with lower interest rates, tax cuts, and government initiatives aimed at keeping cost of capital low, stimulating demand and lending. As these measures take effect, consumption growth is expected to pick up from the December quarter onward. Looking slightly ahead, two structural themes stand out for the next 3Y to us at Itus – Consumer Tech and Chemicals. Consumer tech businesses, once past their heavy investment phase, could see strong operating leverage and robust earnings growth in a low-rate environment. The chemicals sector, after a reset from inflated post-COVID levels, is positioned for a rebound as capacity utilization rises and returns expand. We also expect FII inflows to return as global capital rotates towards Asia, supported by loose monetary conditions and improving domestic earnings. In summary, with growth and liquidity both turning favourable, India is well placed for a period of mean-reverting growth expansion across key sectors.