Oppenheimer Asset Management's Managing Director and Chief Investment Strategist, John Stoltzfus, says "India is well positioned to take on the process of diversification of the global supply chain, away from one country centricity." This will help retain global investors' interest in the country.
In an interview with CNBC-TV18, Stoltzfus said their view on globalisation has been that this diversification process, which began around 2016, will gather momentum and likely benefit both developed as well as emerging markets.
He pointed out that foreign investors are already familiar with the big names in the pharmaceutical, technology, steel, and manufacturing spaces and the list is set to expand. “So, most certainly India is an area of increasing interest in the US,” he added.
The diversification process, popularly referred to as the "China Plus One", is a business approach being adopted by companies looking to diversify their manufacturing and supply chain away from China, adding at least one other country to their operational footprint to mitigate risks and dependencies. With its large workforce, growing infrastructure, and supportive government policies, India is believed to be well-placed to benefit from this shift.
Also Read
Explaining the shift in investor focus from China to other countries, Stoltzfus said that the markets also care about revenues and profits, essentially, from an equity perspective as well as monetary policy. They looks for bets where it is not too restrictive and doesn't curtail growth, but also the central banks are not too loose with the spending, as that can create bubbles.
Meanwhile, the Indian central bank, Reserve Bank of India (RBI), on February left its key lending rate (repo rate) unchanged at 6.5% for the sixth consecutive time. The RBI cited risks of food price shocks and geopolitical tensions as potential threats that could alter the course of the currently downward trajectory of inflation.
For the entire interview, watch the accompanying video
(Edited by : Shweta Mungre)
Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!
