On November 8 the Indian prime minister unleashed probably the most unexpected and dramatic act of monetary policy by a politician in living memory. A population of 1.3 billion was given four hours’ notice that 86pc of the country’s cash would become worthless.

Narendra Modi’s withdrawal of all 1,000-rupee and 500-rupee notes in a bid to stamp out corrupt “black money” is the latest in a series of policies that aim to modernise the country at breakneck speed.

For decades India and China have battled to be chief among the emerging markets that investors use to diversify against British and American stocks.

Could India’s overnight economic revolution and more favourable demographics – it boasts a far younger population than its bigger rival – finally tip the balance in its favour?

Telegraph Money spoke to Avinash Vazirani, the manager of the £673m Jupiter India fund, on his return from the subcontinent, where he spent time accompanying Theresa May on her first trade trip to the region.

There is a lot going on in India at the moment…

No one was expecting Modi’s “de‑monetisation” and it comes at the same time as a new goods and services tax, essentially VAT, and an enormous new social security system. Not only that, but around 250 million brand new bank accounts have been opened over the past 18 months.