Kunal Desai from GIB Asset Management emphasizes the investment potential of India as future “blue chip companies” emerge amid global geopolitical shifts. With President-elect Donald Trump likely imposing substantial tariffs on Chinese goods, analysts argue that India stands to benefit, attracting manufacturing businesses seeking to avoid these duties. Desai describes India as one of the most attractive, scalable investment opportunities globally, highlighting improved return on equity, monetary sovereignty, and increasing private investment as key factors. He points to Prime Minister Narendra Modi’s “Make in India” initiative as a significant driver for manufacturing growth, specifically noting the promising cables and wires sector as crucial for urbanization and infrastructure projects.
In contrast, Desai expresses optimism for Chinese stocks despite investor concerns over Trump’s potential impact on China-U.S. relations. He anticipates that rising tensions will push Chinese policymakers to stimulate domestic consumption, benefiting companies with strong brand power and profitability, such as Yum China. Desai believes that the next 18 months in China will see substantial capital returns through dividends and buybacks, echoing trends seen in the U.S. in recent years, thus presenting intriguing investment opportunities amidst a shifting economic landscape.
