Michael Yoshikami, the CEO of Walnut Creek CA-based Destination Wealth Management, said, “India looks like a bright spot in particular because you’re seeing tech companies starting to move forward in terms of manufacturing in India.” He added that he is expecting an economic growth of 5% to 6% in the next five years. A large part of this is driven by India’s outsourcing sector being on pace to keep its momentum, he noted.
The International Monetary Fund recently released its forecast for India’s economy to expand by 5.9% in 2023 reports CNBC.
According to Yoshikami labor costs in China are not as affordable as they used to be, while India’s labor costs are well below many other countries.”I think you’re going to continue to see an outsource away from China and other countries, maybe Philippines and Vietnam … to India,” he stated.
To leverage on India’s burgeoning growth, Yoshikami picked the banking sector as one of the shining stars for international investors. “I think that probably the best value right now is in [India’s] banks … if you look around the world, banks in general, have been struggling in the United States,” he explained.
Yoshikami also noted that the technology sector has made some recovery inroads, and won’t necessarily give banks the upper hand. “I think they both hold promise … I certainly think they’re sort of a barbell approach.”
