Ancillary industries and local small and medium enterprises will be flooded with new business opportunities. According to the brokerage firm.
Majority of the listed stocks that provided investment opportunities for investors are located in India and parts of Southeast Asia. India companies like Reliance Industries Ltd., Bharat Electronics Ltd, Exide Industries Ltd., Sona BLW Precision Forgings Ltd., Uno Minda Ltd. will benefit the most from the shift in supply chains, notes Nomura.
Major beneficiaries will be ancillary industries and local SMEs in most of the Asian countries, and long-term indirect beneficiaries will be quality large-cap domestic banks and financial institutions. Revenues generated for companies from this supply chain shift may not be significant during the early stages of these shifts but will likely grow over time.
The benefits of the China Plus One strategy will span companies in electronics and semiconductors, autos, solar energy, pharmaceuticals, and defence sectors, Nomura said. India’s exports are likely to grow from $431 billion in 2023 to $835 billion by 2030, a compounded annual growth rate of 10%.
