India’s progress in renewables, electric vehicles (EVs), and electronics manufacturing - historically areas of weakness - are emerging as a major structural positive for the economy, veteran money manager and 3P Investment’s Prashant Jain has said.
In 3P's latest newsletter, Prashant Jain has gone on to project that these sectors could help propel India’s GDP growth to more than 7 percent on a sustainable basis.
Jain said after years of import dependence in sectors such as electronics and clean energy, India is witnessing a rapid expansion driven by a policy push, private investment and supply-chain diversification by global players.
“Following concerted efforts of the government and industry, India is making quick progress in not just electronics manufacturing, but also in electric vehicles and renewable energy,” said Prashant Jain.
India is projected to assemble about 25 percent of Apple’s iPhones next year, with over 20 percent of value addition, a milestone that should strengthen local manufacturing capabilities. Domestic firms are stepping up to design and produce competitive EVs in both two and four-wheeler segments, while large-scale indigenisation in solar power - including manufacturing of modules, cells, and wafers - is advancing rapidly in India.
Jain said as EV adoption rises and solar energy scales up further in India, local value addition will deepen, leading to lower costs, accelerating India’s energy transition.
“Success in these areas of weakness gives confidence of progress in other areas like chemicals, pharma, contract manufacturing, and metals processing,” Prashant Jain said.
Manufacturing, Jain said, has emerged as one of largest opportunities, and even a modest success can lift India’s economic growth meaningfully. With fiscal and monetary policies aligned to support growth and investment, along with reforms that are aimed at improving competitiveness, the economy is positioned to achieve and sustain growth above 7 percent growth in the medium term, said Prashant Jain.
On Moneycontrol’s Wealth Formula show, Prashant Jain said that he may not invest in the solar or EV space right now, but there are opportunities in the space. “I think wherever there is change, wherever there is positive growth, there is scope to invest. I am not saying that I would invest in solar or EVs today, but opportunities can emerge in whichever area where you are progressing,” Prashant Jain said.
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