Nicholas Vardy

For all its fans among those seeking enlightenment, not everyone has a high opinion of India.

Arthur Koestler’s 1960 classic book, “The Lotus and the Robot,” unflatteringly described his experience of arriving in Bombay (Mumbai) as “the sensation that a wet, smelly diaper was being wrapped around my head by some abominable joker.”

Global investor Jim Rogers refuses to invest a dime into India, saying it’s “a wonderful country, but a terrible investment.”

Yet, India is now the single best-performing stock market in the world among the 45 global stock markets I monitor. And the Indian market’s recent rise has propelled India into the ranks of the 10 largest global stock markets in the world.

No wonder India is becoming the global investment story of 2014.

My India recommendation to subscribers in my trading service,Triple Digit Trader, is up 48.05% just since April 3. India’s 13.3% weighting in my firmGlobal Guru Capital’s“Global Gains” Investment Programhas also helped boost my clients’ returns significantly.

The Indian market’s rise has a simple explanation: the recent election of Narendra Modi as India’s next president.

India: What Happened?

Despite the stock market’s recent rise, India has been Asia’s most disappointing long-term growth story.

Thirty years ago, India’s per capita gross domestic product (GDP) was equal to that of China. Even 10 years ago, India boasted close to a 10% annual growth rate, thanks to high investment and a highly educated cadre of internationally oriented entrepreneurs.

But then something went wrong. Today, India’s GDP stands below Italy’s. The majority of manufacturing workers operate in factories without electricity. Infrastructure is decades behind China. Only 3% of Indians pay income tax. Say the word “India” to any businessman in Asia, and he thinks “bureaucracy, incompetence and corruption.”

Modi: India’s Ronald Reagan?

Investors are betting that Modi’s election is set to change all of that. And they just might be right.

Nicholas Vardy

Nicholas Vardy is currently editor of the monthly investment newsletter, The Alpha Investor Letter, which provides longer-term global investments. He also writes two weekly trading services, Triple Digit Trader and Bull Market Alert, which focus on making short-term profits in the hottest markets in the world.