India’s growth is set to power ahead. Analyst names ‘best value’ sectors

India’s growth looks like a “bright spot” as the country’s outsourcing sector remains robust amid a growing trend of tech firms moving production to the country, said Destination Wealth Management’s chief executive.

“India looks like a bright spot in particular because you’re seeing tech companies starting to move forward in terms of manufacturing in India,” said Michael Gee of Wealth Management, who expects economic growth of 5% to 6% over the next few years. in five years.

The International Monetary Fund recently issued a forecast for India’s economy to grow by 5.9% in 2023.

The chief executive said this was largely driven by the continued momentum in India’s outsourcing industry.

Many companies choose to outsource software development projects to India at a reasonable cost to ensure quality, it is said Krina Mehtaco-founder of Fortune Infosys, an American offshore software development company.

The country’s “outsourcing phenomenon” is here to stay, Yoshikami said, attributing it to its collection of technical schools and companies that make cost containment a priority.

Labor costs in India are also much lower than in many other countries, especially compared with rising wages in China, he said.

“China used to be cheap outsourcing. It’s not cheap outsourcing anymore,” Yoshikami said.

“I think you’ll continue to see outsourcing from China and other countries, maybe the Philippines and Vietnam … to India.”

To capitalize on India’s boom, Yoshikami chose banking as a a shining star for international investors.

“I think the best value at the moment is probably (India’s) banks … If you look around the world, banks in general have been struggling in the US,” he said.

The US banking crisis triggered by the collapse of Silicon Valley Bank in March continued to weigh on market sentiment.

Yoshikami noted, however, that the tech sector has made some progress towards recovery and that doesn’t necessarily give banks the upper hand.

“I think they both have promise … I certainly think they’re a barbell approach.”

this barbell method Is an investment strategy that seeks to balance high-risk and risk-free assets by investing in the two extremes, while avoiding moderately risky options.

“I wouldn’t put all your money in the bank, I wouldn’t put all your money in technology … I think it’s too risky a bet.”