Synopsis
Mark Mobius emphasizes India's potential to become the second-largest economy globally, given its resilience and policy consistency. With projections for significant GDP growth, he notes the importance of addressing import restrictions to foster manufacturing growth and urges investors to approach the stock market with a recovery mindset.Key Takeaways
- India has the potential to become the second-largest economy.
- Real GDP projected at $4.3 trillion by 2025.
- Population advantages over China with 1.2 billion people.
- Market recovery expected; investors should average into stocks.
- Stock market recovery adds Rs 11 lakh crore to wealth.
New Delhi, April 16 (NationPress) India is not merely the world’s third-largest economy; it possesses the potential to evolve into the second-largest economy globally, provided it continues its path of resilience and consistent policies, stated billionaire investor Mark Mobius on Wednesday.
In recent years, India has advanced from being the 11th largest economy to the fifth largest. By 2025, India is expected to retain its position as the fifth-largest economy worldwide, following the US, China, Germany, and Japan in terms of overall GDP.
As per the latest estimates from the IMF, India’s real GDP is projected to reach $4.3 trillion by 2025, closely trailing Japan’s $4.4 trillion and Germany’s $4.9 trillion. Given its growth trajectory, India is anticipated to surpass Japan this year and Germany by 2027.
Mobius shared with IANS that India holds the potential to become the second-largest economy in the world.
"India now has a significantly larger population than China. Current estimates suggest that China’s population could be 800 million or fewer, with an average age much higher than India’s 1.2 billion people," he argued.
"If India can dismantle import restrictions (both tariff and non-tariff), the manufacturing sector will flourish, and the economy will continue to grow stronger," remarked the global investor who oversees the Mobius EM Opportunities Fund focused on emerging markets (EMs).
On the recent performance of the Indian stock market in light of global uncertainties, Mobius informed IANS that even prior to the US trade restrictions, the Indian stock market had undergone a significant correction.
"A market recovery is on the horizon, so it would be wise for investors to gradually start averaging into quality stocks. For those already holding stocks, it’s advisable to maintain their positions and await recovery," he advised.
The Indian stock markets have staged a remarkable comeback, with a single-day rally on Tuesday adding a staggering Rs 11 lakh crore to investors’ wealth — effectively reversing all losses incurred following the US tariff shock on April 2. This recovery was broad-based and fueled by strong investor sentiment, bolstered by global cues and domestic optimism.
