According to the CEO of Destination Wealth Management, India’s growth looks like a “bright spot” as the country’s outsourcing sector remains robust on top of a growing trend of technology companies moving their production lines to the country.

“India looks like a bright spot especially because you see technology companies starting to move forward in terms of manufacturing in India,” said Michael Yoshikami of the wealth management firm, who said he expects economic growth of 5% to 6%. in the next five years.

International Monetary Fund recently released a 5.9% growth forecast for the Indian economy in 2023.

Much of this is due to India’s outsourcing sector, which is on pace to maintain its momentum, the CEO said.

Many companies choose to outsource their software development projects to India because of the quality at a reasonable cost Krina Mehtaco-founder of US-based offshore software company Fortune Infosys.

The country’s “outsourcing phenomenon” will continue, Yoshikami said, crediting his gathering of technology schools and companies that prioritize cost control.

He said labor costs in India are also significantly lower than in many other countries, especially compared to rising wages in China.

“China used to be cheap outsourcing. It’s just not cheap outsourcing anymore,” Yoshikami said.

“I think you will continue to see outsourcing outside of China and other countries, maybe the Philippines and Vietnam … to India.”

To take advantage of India’s surging growth, Yoshikami singled out the banking sector as one of the shining stars for international investors.

“I think the best value right now is in [India’s] banks … if you look around the world, banks in general are struggling in the United States,” he said.

The US banking crisis that broke out in March, triggered the collapse of Silicon Valley Bankcontinues weighs on sentiment.

However, Yoshikami noted that the technology sector has made some recovery and does not necessarily give the banks the upper hand.

“I think they’re both keeping the promise…I definitely think they’re a barbell in a way.

The dumbbell approach is an investment strategy that seeks to balance high-risk and risk-free assets by investing at both extremes while avoiding medium-risk options.

“I wouldn’t put all your money in banks or all your money in technology… I think it’s too risky a bet.”