‘Built for the World in India’: Nippon AMC’s Sikka sees manufacturing opportunity amid global turmoil
Sundeep Sikka said forces influencing capital markets were shifting beyond conventional economic policy towards geopolitics
Geopolitical tensions, tariffs and supply chain disruptions are transforming global capital markets, creating fresh prospects for India. Multinational corporations are increasingly considering India as a manufacturing hub rather than just a consumer market, according to Sundeep Sikka, Managing Director & CEO of Nippon Life India Asset Management.
Sikka noted that current capital market forces have shifted from conventional economic policy to geopolitics due to uncertainties over tariffs, ongoing conflicts, changing alliances and shifts in energy markets. He emphasized that India is no longer only a 'Make in India' destination, but is also emerging as 'built for the world in India' as foreign companies show growing interest in establishing manufacturing operations here.
Sikka highlighted that conversations with Japanese companies have shifted from explaining India's potential to discussions on expanding operations in the country. Additionally, smaller companies, not just large multinationals, are expressing interest in India's potential as a manufacturing base. Sikka also mentioned that Germany could offer opportunities for manufacturing companies exploring new locations due to changing business conditions.
India's growing strategic and economic engagement with major economies like Japan and Germany underscores increasing trust in the country's economic potential. At home, retail investors' increasing participation is a significant structural change in India's capital markets, providing a counterbalance to dependence on foreign capital.
However, there is still considerable room for market penetration, with only about 4% of India's population investing in mutual funds compared to the global average of around 65%. Sikka also highlighted the strength of India's primary market, citing the increasing number of IPOs, investor appetite, and improving quality of companies accessing public markets.
He emphasized that the capital markets ecosystem plays a crucial role in connecting companies needing capital with investors looking to participate in India's growth. With domestic and foreign capital available alongside economic growth, India is at an inflection point, according to Sikka.
Written by urgent.news from Hindu BusinessLine's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
