Indian stocks will benefit from the Trump 2.0 era, portfolio manager says

Investors eyeing up firms with the potential to become the "blue chip companies of the future" should look to India, according to GIB Asset Management's Kunal Desai.

The portfolio manager said India's geopolitical positioning is "favorable in this Trump 2.0 era" as investors assess the country's ability to take advantage of a possible trade war between China and the U.S.

President-elect Donald Trump has pledged to impose big tariffs on goods from China when he takes office. Tariffs on goods imported from China into the U.S. will likely benefit India, analysts say, as companies shift manufacturing to the South Asian nation to avoid duties.

Speaking to CNBC's Silvia Amaro, Desai described India as "probably one of the most attractive, secular and scalable investment opportunities globally."

As well as geopolitics, Desai cited the country's monetary sovereignty, improving return on equity — a key measure of a company's profitability — and increased private investment as reasons to invest.

Prime Minister Narendra Modi's "Make in India" initiative has also been cited by analysts as a major boon for some Indian manufacturing companies.

For Desai, "one of the most attractive areas is cables, power cables and wires, which go into the development of urbanization and infrastructure projects in India."

He said these businesses were not just looking at India as a "core market," but were also seeking to expand and start exporting.

"And given the difficulties that Chinese companies have had from an export standpoint, a number of Indian companies are taking advantage as customers look to take a dual source approach to their supply chain," Desai said.

Despite investor worry over Trump accelerating "hawkish Chinese policies" on his return to