Moneycontrol
Get App
you are here: HomeNewsBusiness
Last Updated : Feb 14, 2020 01:15 PM IST | Source: Moneycontrol.com

India in ‘sweet spot’ for investments, says Citibank’s K Balasubramanian

While the shift from China has usually been toward ASEAN countries, Balasubramanian feels that India’s telecom industry may see immediate benefits


Economic reforms, consistent policymaking in India and with investors looking to de-risk from China amid coronavirus (COVID-19) scare puts India in a “sweet spot”, says K Balasubramanian, Head – Group Corporate Banking, Citibank.

“Global manufacturing companies have been thinking about a dual — Asia strategy, or China + one, to balance out production. India can clearly become a beneficiary, particularly given the policy and tax measures the government has taken since last July,” he told the Economic Times.

Citi has close to 30 percent market share of the MNC businesses with large exposure to manufacturing.

Close

While the shift has usually been toward ASEAN countries, Balasubramanian feels that India’s telecom industry may see immediate benefits; followed by the electrical and electronics. Then, in another 18-24 months, investments in semiconductor manufacturing “is only a matter of time” and electric vehicles (EVs) could be another big opportunity.

India’s English-speaking workforce, legal system and positive momentum from the IBC give the country an advantage, Balasubramanian added.

Speaking about the Budget and MPC, he said the government did deliver considering fiscal constraints. Noting that foreign capital is necessary to support planned infrastructure and consumption, he added: “incentives for sovereign wealth funds are in the right direction.”

Canada is investing in India, Middle-Eastern funds are also increasing allocation, and Singapore and Japan have “historically been big supporters of India”, he observed and expects impending trade deal will accelerate trade with the US.

He further pointed out that COVID-19 has “put the markets back by four to six weeks, but it is early days and one has to wait and watch.”


Subscribe to Moneycontrol Pro's Annual plan for Rs 399/- for the first year. Use coupon PRO2020 (Available on Web & Android only).

First Published on Feb 14, 2020 01:15 pm
Sections
Follow us on