In 2001 Goldman Sachs’ Jim O’Neill coined the acronym BRIC for the four emerging economies of Brazil, Russia, India and China. He argued that the BRIC countries were poised for a takeoff, uncoupled from the performance of the developed countries.

The uncoupling is over — as the developed economies have faltered lately, so have the BRICs.

Now, with weak demand from the developed economies, slow domestic growth and spiraling inflation, many are writing off the BRICs. The contrarian BRIC is India. Its inflation has leveled off. Domestic demand continues to grow. And its dependence on foreign demand has lessened. That’s great news for investors in India.

An example: For investors in Alchemy Long Term, a small equity fund being managed out of Mumbai, 2012 has been exceptionally good.

Alchemy’s Offshore Equity Fund, to date, is up about 34 percent, compared to the 22 percent growth recorded by the benchmark BSE500 index. And it has beaten the Dow Jones Industrial Average, which is up to 13245 from 12218 on December 31, 2011.

“Alchemy is betting on management teams that continue to grow their companies. They see this tough environment as an opportunity to build, not just stay put,” says Hiren Ved. “They see this environment more as an opportunity, than a constraint,” says Hiren Ved, chief investment officer of Alchemy Investment Management, which manages Alchemy Long Term and a number of other India-specific funds. And they all are focusing on tapping domestic demand.