Mark Mobius Highlights India’s Growth Potential; Focuses On Inflation Management & Infrastructure

On Thursday, Mark Mobius, a renowned investor emphasized that India’s success in managing inflation while maintaining growth is crucial for attracting long-term foreign investments. He noted that a growth rate of 6-7 percent is strong for India, given the global average.

Speaking at an investor webinar hosted by PL Capital-Prabhudas Lilladher, Mobius highlighted India’s robust 5.4 percent growth in Q2 FY25, despite its $4 trillion economy.

Mobius, Chairman of Mobius Emerging Opportunities Fund stated, “From a macroeconomic perspective, a 6-7 percent growth rate in India is a good rate given the global average. ‘Make in India’ and the impetus the government provides to manufacture locally is a big positive and the biggest advantage of local manufacturing in India is that they have a big market for local/self-consumption.”

Mobius also highlighted the Indian government’s successful efforts in building infrastructure to support growth.

“Despite political challenges, PM Modi’s administration remains focused on reducing inefficiencies, modernizing infrastructure, and enhancing governance. The central challenge lies in balancing populist measures with long-term structural reforms,” he asserted.

Mobius Highlights Key Growth Areas For India

Mobius pointed out key areas where India can benefit both locally and globally, such as defence manufacturing, semiconductors, infrastructure, urbanization, tourism, energy, commodities, and digital public infrastructure.

Regarding US President-elect Donald Trump’s views on trade tariffs, he further suggested that Trump might use tariffs as a strategy to negotiate better trade deals.

Mobius noted, “Emerging Markets like India stand to benefit as there is a limit to which investors would want to put their money in the US market. Plus, the opportunities in emerging markets are also thriving.”

In conclusion, Mobius expressed a cautiously optimistic outlook for both global and Indian economies, citing the tapering of the Russia-Ukraine conflict and reduced Middle East instability as factors likely to bolster growth worldwide.

Also Read: Global Economists Forecast Weaker Economic Conditions In 2025; India Set To Maintain Growth