Today in my economics session, we were exploring the possibilities for the Indian economy in the near future.
And, we discovered that this one sector is going to lead India in its journey to becoming a $5 trillion economy!
And, we discovered that this one sector is going to lead India in its journey to becoming a $5 trillion economy!
China plus One!
China has become the ‘World’s factory’, over the last few decades.
Around 30% of global manufacturing ($4 tn) happens in China.
China has become the ‘World’s factory’, over the last few decades.
Around 30% of global manufacturing ($4 tn) happens in China.
West's Investment in China
For the last 30 years, Western companies have invested heavily in China, attracted by its low labour and production costs.
Garments, Toys, Electronics - you name it & they have been manufacturing it for years!
For the last 30 years, Western companies have invested heavily in China, attracted by its low labour and production costs.
Garments, Toys, Electronics - you name it & they have been manufacturing it for years!
Time Changes
But over the last three years, changing geopolitics (US-China Trade War), the pandemic & China's zero COVID policy has started this trend of diversifying the supply chain.
But over the last three years, changing geopolitics (US-China Trade War), the pandemic & China's zero COVID policy has started this trend of diversifying the supply chain.
The West exits China!
Many European and American companies are moving their manufacturing facilities out of China.
Infact, a survey by UBS suggests that 20-30% of manufacturing will be leaving from China
But, where do they go?
Many European and American companies are moving their manufacturing facilities out of China.
Infact, a survey by UBS suggests that 20-30% of manufacturing will be leaving from China
But, where do they go?
We Sense Opportunity
India's manufacturing sector is the most likely candidate to benefit from this situation owing to its mass and cheap labour, plus its strategic location and global ports.
India's manufacturing sector is the most likely candidate to benefit from this situation owing to its mass and cheap labour, plus its strategic location and global ports.
India's Competitive Advantage in Various Industries
Specialty Chemicals : 35% market share in exports
Textiles : West has banned cotton from Xinjiang
Electronics : Govt PILs and Initiatives to make electronics in India and banning importing phones under ₹12K
Specialty Chemicals : 35% market share in exports
Textiles : West has banned cotton from Xinjiang
Electronics : Govt PILs and Initiatives to make electronics in India and banning importing phones under ₹12K
This sounds like a great opportunity for India, right?
Who is going to benefit out of this?
Indian companies!
How do we get to know which company to invest in?
Using @smallcaseHQ #partnership
Who is going to benefit out of this?
Indian companies!
How do we get to know which company to invest in?
Using @smallcaseHQ #partnership
@smallcaseHQ helps you invest in a basket of theme-based stocks.
If you're bullish on rural India's growth, there is a smallcase for that!
Or if you're bullish on India's EV story, there is a smallcase for that too
If you're bullish on rural India's growth, there is a smallcase for that!
Or if you're bullish on India's EV story, there is a smallcase for that too
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