These include the democratization of boardroom opportunities, the $300 billion China +1 opportunity, and the empowerment of Indian women.
“In the realm of emerging markets, both India and China have produced a significant number of consistent compounders—companies that have consistently achieved 10% year-on-year revenue growth and 10% RoCE over a decade. However, India not only surpasses China in the number of consistent compounders but also outperforms by delivering more than double the shareholder returns compared to its Chinese counterparts,” Marcellus said in a release.
According to the investment manager, India is at the cusp of a major economic transformation with the China +1 opportunity. As global businesses look to diversify their supply chains away from China, India is likely to benefit significantly with key sectors such as smartphones, active pharmaceutical ingredients (APIs), and medical devices expected to drive this growth, potentially contributing an additional $300 billion to India’s economy.
“This opportunity is further bolstered by the Indian government’s proactive policies encouraging global businesses to invest in India, creating a conducive environment for sustained economic growth,” it said.”India is at a pivotal juncture where the convergence of democratized opportunities, strategic economic positioning, and the empowerment of women are setting the stage for unprecedented growth. The rise of new entrepreneurs from smaller towns, the potential of the China +1 opportunity, and the increasing economic power of Indian women are key drivers that will shape India’s future,” said Saurabh Mukherjea, founder and chief investment officer of Marcellus Investment Managers.India’s business environment has undergone significant changes over the years, fostering an era where opportunities are increasingly accessible to a broader spectrum of society. The rise of new entrepreneurs from smaller towns and less privileged backgrounds exemplifies this shift, said Marcellus, adding that the digital and physical integration has also enabled these individuals to rise to prominence.Further, the empowerment of Indian women as seen in rising education levels led to a surge in women-centric consumption and investment opportunities across various sectors. Urban Indian women are accumulating more wealth, as evidenced by larger bank deposits and higher earnings in sectors like the booming tech industry.
“These transformative themes are creating new investment opportunities across various sectors as investors are now able to tap into the burgeoning entrepreneurial landscape in smaller towns, capitalize on the diversification of global supply chains with the China +1 opportunity, and explore the rising women-centric consumption and investment trends,” the Marcellus said.
