More than 700 million people are expected to move to Indian cities by 2050 primarily due to workforce migration. This will lead to increased disposable incomes, aggregation of demand around urban centres. TCGF expects that this is like to be favourable for companies which are in the branded consumer goods space, quick service restaurants, housing and allied services like housing finance, education and financial services.
India suffers from higher capital, power and logistics costs compared to China and certain South East Asian economies. While the labor cost in India is lower, labour productivity in India is lower compared to other countries. Thus to be competitive in manufacturing, India companies have to focus on knowledge intensive, export oriented and high asset turn businesses. This we believe is favorable for companies in the export of Pharmaceutical API, Specialized Chemicals, high value export-oriented manufacturing.
India has technically qualified English speaking manpower able to service global demand at a favorable cost but plain vanilla sectors are slowing. TCGF is choosing to focus on sectors which are high growth like mobile, big data and allied sectors like cybersecurity. Sectors that can benefit from this theme include IT, Engineering Services, SaaS as well as healthcare services and healthcare analytics.
