🥻 NEARSHORING: INDIA 🥻
Geopolitical tensions have made migrating the US and European investments. China is still great, but loss its position as global technological manufacturing factory. In this game, Japan [ Nearshoring: Japan] is the player in the Pacific, Vietnam/Thailand/Malaysia/Indonesia in the Southeast Asia, and Mexico [ El "Mexican Dream" llegó... ¿Será sostenible?] and India as the biggest winners because they have a common factor: being a strategic-buffer state (I will discuss this in future posts).
India culture has some positive points: it has an important approach with western culture because of its British past, its community sense, its ethics and its STEM (Science, Technological, Engineering, and Mathematics) approach in the education and its productivity. Another advantage that India offers is:
- Low labour cost
- Software development knowledge
- Importance of financial vision
However, there are some disadvantages: its classism (India has a caste system), its gender discrimination, its intolerance of sexual diversity, its over-pollution, its bureaucracy and the poverty (due to its system and politics). Be that as it may, India has put a spacecraft on the moon and, with China and Russia, could reveal the new face of the economic world.
Due to above, many Indian companies could have a boost in the next years. In that sense, the chart shows the 25 most relevant from NIFTY 50. In the case of this sample, its average ROE (Return on Equity) from 2017 to 2022 explains ± 68.5% of its annual volatility behaviour over the last twelve trailing months (TTM) to March 2023. It is worth noting the importance of the technology sector in its index, where it is the opposite of Mexico for example (another comparable country). However, the point is to highlight the relevance of India in any diversification because of its position and power as a promising country.
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J. Joel Padilla
Copyright: Joel Padilla 2023
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