India’s political action sent its markets soaring. After lagging global markets on fears of political unrest, the country’s investors finally have enough reasons to buy. The action could be just the beginning.

The Indian market as measured by the Mumbai Sensex Index is down 22% this year, about 25% below its all-time high reached in January. That’s not very surprising: China is down further (about 35%) and most other emerging stock markets have also fallen. Growth in 2008 seems likely to be slower than in 2007 and there are some signs of a credit crunch.