India major gainer of China+1, exports to soar to $835 billion by 2030: Nomura
New Delhi: India and Vietnam are gaining the most from the China plus one strategy, which is also expected to unlock new growth opportunities for Asian economies, according to Nomura.
India's exports will likely surge to $835 billion by 2030 from $431 billion in 2023 with its large domestic market helping attract firms looking for supply chain alternatives to China, Nomura said in a report on Tuesday.
«Firms in electronics, apparel & toys, automobile & components, capital goods and semiconductor manufacturing are looking to invest in India. Given India's large domestic consumer market, firms setting up shop in India are attracted also because of the captive domestic market,» Nomura said, predicting a 10% annual growth over the period.
The global research firm expects electronics to become the fastest-growing sector, clocking a compound annual growth rate of 24% in exports, with value nearly tripling to $83 billion by 2030. Machinery exports will more than double to $61 billion by 2030 from $28 billion in 2023.
«We believe the low production linked incentive (PLI) disbursements are not a good reflection of India's potential on global value chain integration. Its large market size, faster growth, lower labour cost and political and economic stability make it an attractive investment destination for consumer goods production to both cater to domestic demand and also for exports,» Nomura said, expecting India's share of global trade to rise to 2.8% by 2030.
Nomura pointed out that competitiveness of Indian
