The Rise of India and Vietnam in Global Supply Chains

India and Vietnam largely benefit from global supply chain shift
Ancillary industries and local SMEs in Asia will see a surge in business opportunities due to the shift in supply chains. Indian companies like Reliance Industries Ltd. are expected to benefit greatly. The China Plus One strategy will benefit electronics, autos, solar energy, pharmaceuticals, and defense sectors, with India's exports set to grow significantly by 2030.
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According to a brokerage firm, ancillary industries and local small and medium enterprises are expected to see a surge in new business opportunities as a result of supply chain shifts. Majority of the investment opportunities in listed stocks come from India and Southeast Asia, with companies like Reliance Industries Ltd., Bharat Electronics Ltd, and Exide Industries Ltd poised to benefit greatly from these changes.

The main beneficiaries of the supply chain shift will be ancillary industries and local SMEs in various Asian countries, with long-term benefits also extending to large-cap domestic banks and financial institutions. While the immediate revenue impact may not be significant, it is expected to grow over time as the shifts take effect.

Nomura highlighted that the ‘China Plus One’ strategy will benefit companies in electronics, semiconductors, autos, solar energy, pharmaceuticals, and defense sectors. India’s exports are projected to increase from $431 billion in 2023 to $835 billion by 2030, showcasing a compounded annual growth rate of 10% due to these supply chain changes.

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