EV has been a significant valuation method for decades , mostly used by value investor like buffet here http://www.retirerichblog.com/2007/10/price-vs-market-cap-vs-enterprise-...

Does it apply in a growing economy like India ?

When valuing stocks, it is important to use  ratios like PE, PEG,
Price to Sales, etc.  These seem very basic, and are, but there is one
problem with them.The problem is what is used for price.  The typical
value for price is the market cap….the total number of shares x share
price.  The problem with this is that it does not factor in capital
structure.  My point is that if you were to buy a company, not only do
you have to purchase all outstanding stock, you must also pay the
debt.  On the other site, if you the company had a net cash position,
you would get that cash.  So how do you factor this in….Enterprise
Value.  All enterprise value is, is market cap plus debt, minus cash. 
So if the company is cash heavy, the price is smaller, making the PE,
PEG, and other measures more favorable.  On the other hand, if the
company is in a lot of debt, the valuing ratios will be less favorable.

So, the moral of the story, whenever you do your valuing ratios, do
not use market cap, use enterprise value, it gives a better reading.