Long-term investment is shifting back to India

Niranjan Avasthi from Edelweiss Mutual Fund believes that long-term investments will flow back to India, while China will mostly attract short-term tactical money. He emphasizes that India's economy presents strong growth potential, especially as the U.S. market reaches its peak. Avasthi notes that while China has shown a recent recovery, it is mainly a tactical opportunity. He points out that the Chinese market rebounded by 45-50% over the past six months due to government actions to stimulate the economy. However, issues like the struggling real estate sector remain challenges for China. According to Avasthi, structural investment capital, which seeks long-term growth, will favor India. He explains that while Europe is recovering, it cannot compete with India in terms of long-term growth prospects. He predicts that as U.S. markets peak, India's economy will be viewed more favorably by investors. Avasthi acknowledges that while China has been attracting tactical investments, its long-term growth and policy stability need to improve. He believes that once these issues are addressed, China may become a stronger contender for investment. In summary, Avasthi encourages investors to consider India for long-term investments. He believes that with current prices and growth indicators, India presents a more attractive opportunity than both China and Europe at this time.