Marcellus Investment Managers, one of the leading portfolio management service providers, believes smartphones, active pharmaceutical ingredients (APIs) and medical devices to drive the next phase of growth and potentially contribute an additional $300 billion to Indian economy.

The opportunity is further bolstered by the government’s policies encouraging global businesses to invest in India by creating a conducive environment for sustained economic growth.

China +1

India stands at the cusp of a major economic transformation with the China plus one opportunity. As global businesses look to diversify their supply chains away from China, India is poised to benefit significantly, said Marcellus which has asset under management of ₹7,464 crore as of May-end.

Saurabh Mukherjea, Founder and Chief Investment Officer of Marcellus Investment Managers, said the rise of new entrepreneurs from smaller towns, the potential of the China plus one opportunity and the increasing economic power of Indian women are key drivers that will shape India’s future.

More entrepreneurs

In the realm of Emerging Markets, both India and China have produced a significant number of companies that have consistently achieved 10 per cent year-on-year revenue growth and 10 per cent RoCE (return on capital employed) over a decade. However, India not only surpassed China in the number of consistent compounders but also outperformed by delivering more than double the shareholder returns compared to its Chinese counterparts, it said.

The digital and physical integration of India has enabled small town entrepreneurs with less privileged backgrounds to rise to prominence, challenging traditional power structures and creating a new entrepreneurial and professional class.

Rising education levels among women have led to a surge in women-centric consumption and investment opportunities across various sectors. Urban Indian women are accumulating more wealth, as evidenced by larger bank deposits and higher earnings in sectors like the booming tech industry.

Despite these gains, challenges remain, such as the declining labour force participation rate among Indian women since 2000. However, the narrowing wage gap between women and men signifies progress towards gender parity.