Shahzad Madon, the Managing Director and CEO of TCG Asset Management Company, has expressed optimism regarding the future of the Contract Development and Manufacturing Organization (CDMO) sector, predicting that it still has significant growth potential. He highlighted that the conclusion of the Indo-US tariff situation is expected to alleviate some of the pressures on this sector. In a recent interview with Moneycontrol, Madon emphasized the broader healthcare sector, noting it presents exciting opportunities for alpha generation as demand continues to rise.

Madon is confident that the ongoing rally in consumerism will persist, driven by factors such as increasing per capita income, favorable demographics, and evolving societal trends. He mentioned that the expected liquidity infusion and rate cuts by the Reserve Bank of India (RBI), along with anticipated income tax reductions and a GST rate cut, will bolster consumption. Furthermore, he pointed to a more diversified and structural investment cycle, highlighting key themes such as energy transition, digitalization, and electronics manufacturing that are likely to lead the charge in private sector capital expenditures.

On the geopolitical front, Madon expressed optimism about a potential trade deal between India and the US being finalized before the end of the current calendar year, driven by strong economic imperatives. He noted that while the Indian corporate sector and domestic macros remain strong, external risks such as financial stress in developed economies and global geopolitical tensions could pose challenges. Nevertheless, he believes that India is entering a virtuous cycle of robust demand, which could sustain a multi-year consumption rally and spur further investment in sectors like pharmaceuticals.