Domestic manufacturing activities are expected to pick up as the Union government is offering production-linked incentives and increasing the spending on infrastructure, according to Deepak Shenoy, chief executive officer of Capitalmind Financial Services Pvt.
The government is collecting more money in the form of taxes, and he expects that to be invested significantly in domestic manufacturing, especially in infrastructure.
"There will be, I think, a marked increase in activity for domestic manufacturers specifically in the infrastructure sector, the machinery sector, in B2B, commerce and perhaps later down the road, in domestic consumption as well," he told NDTV Profit's Sajeet Manghat in an interview.
The Capitalmind founder highlighted that there are some domestic companies that are showing considerably more interest and movement in earnings, revenue and even the management commentary.
While there are no major Indian brands in a lot of areas, this will "change over the next few years and the domestic manufacturing is a part of it", according to Shenoy.
In terms of defence, he said, India initially bought technology from the other countries and asked them to manufacture in India, but the opportunity is being given to Indian companies now.
Something similar is happening in the railway sector with many of the projects now being allotted to Indian firms, according to him.
One should only invest in a company that has good liquidity, he said. His choices for a portfolio include infrastructure, railway and logistics stocks.
Watch The Interview Here:
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