Global investors turning to India sidestepping China a major shift
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New York: Global investors are increasingly turning to India pulling billions of dollars from China where they previously found lucrative opportunities, according to Bloomberg.
The pivotal shift in global market comes nearly two decades after China emerged as the global destination for funding.
The giants that are endorsing India include Goldman Sachs Group Inc. and Morgan Stanley, triggering what the report said a ‘gold rush’
Projecting the country as the next decade’s investment destination, hedge fund Marshall Wace has picked India as its ‘biggest net long bet after the US.’
‘An arm of Zurich-based Vontobel Holding AG has made the country its top emerging-market holding and Janus Henderson Group Plc is exploring fund-house acquisitions.’ Bloomberg reported.
Meanwhile, retail investors in Japan are reducing their focus on China, turning largely to India.
India’s exponential growth in infrastructure under Modi administration has begun luring ‘global capital and supply lines away from Beijing’.
However, China is in the throes of slowing economy following the pandemic, and struggle to tackle West’s rejection.
While China has emerged as a potential threat to West’s global interests, India is largely seen, according to the report, a counterweight.
Moreover, over the past several years India has equipped itself to be ‘a manufacturing alternative to Beijing.’
The US administration finds it greatly important to strengthen business ties with India, despite having criticised the country’s tax policies.
As India is spending hugely on infrastructure, more than 7% of the iPhone's global output comes from India, suggesting a major shift.
Vikas Pershad, Asian equities portfolio manager at M&G Investments in Singapore, reportedly said that as for India ‘There's a genuine long-term growth story here.’
‘People are interested in India for several reasons - one is simply it's not China,’ Vikas Pershad added.
