Investor Mark Mobius has highlighted India as the leading emerging market, expressing confidence that China cannot surpass its growth. In an interview with the Financial Times, he revealed that nearly 20 percent of his investment portfolio is allocated to India, citing the country’s strong domestic demand, ongoing government reforms, and resilient entrepreneurial spirit as key drivers keeping it ahead of other emerging markets.
Mobius acknowledged the impact of US tariffs on Indian exports, particularly in sectors like pharmaceuticals, gems, and apparel, where a 50 percent levy by the Trump administration could pose challenges. However, he stressed that Indian businesses are adaptable and capable of navigating these obstacles by relocating manufacturing to alternative markets, such as Africa. He praised Indian entrepreneurs for their creativity and ability to overcome such hurdles.
Overall, Mobius believes the effect of tariffs on India’s economic growth would be limited, estimating a potential reduction of just 0.5 to 0.75 percent. He emphasized that India’s massive and rapidly expanding domestic market would continue to fuel growth, suggesting that even if GDP growth moderates from 6 percent to 5.5 percent, it would not be a major concern.
