We also don’t need to rue the potential lack of international investment. About a third of our GDP is saved and a slightly higher ratio is being invested, and both have been rising consistently. There could be some fall in both savings and investment as a share of GDP in the near future. But despite this, we will remain among the highest investors in the world, with or without Wall Street backing.

Foreign investment is highly correlated with domestic investment both across time and across countries. It is not that one causes the other; rather they feed on each other. And they are both the result of positive expectations built on strong foundations of confidence in the economy. At least where India is concerned, there is no reason not to be confident.

The writer heads the economic research firm Indicus Analytics express@expressindia.com