Mark Mobius: India’s 6-7% Growth Rate is Impressive Compared to Global Standards and Strong Infrastructure Development
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Mumbai, December 12 (NationPress) India's competence in managing inflation while maintaining growth is essential for drawing consistent foreign investments, as stated by global investment expert Mark Mobius on Thursday. He pointed out that a macroeconomic growth rate of 6-7 percent in India is commendable when compared to the global average.
Speaking at an investor webinar hosted by PL Capital-Prabhudas Lilladher, the seasoned investor noted that the Indian economy recorded a solid growth of 5.4 percent in Q2 FY25, even with a substantial size of $4 trillion.
“From a macro perspective, a growth rate of 6-7 percent in India is impressive given the global average. The 'Make in India' initiative and the significant support from the government for local manufacturing are considerable positives. One of the largest advantages of local manufacturing in India is the vast market available for self-consumption,” remarked Mobius, who chairs the Mobius Emerging Opportunities Fund.
He further noted that the Indian government has achieved remarkable success in building robust infrastructure to facilitate growth.
“In spite of political hurdles, PM Modi’s government is dedicated to minimizing inefficiencies, modernizing infrastructure, and improving governance. The primary challenge is to strike a balance between populist policies and enduring structural reforms,” Mobius explained.
He identified key sectors where India can benefit both locally and globally, including shifts in sectors like defense manufacturing, semiconductors, infrastructure and urbanization, growth in tourism and travel, as well as energy and commodities, along with digital public infrastructure.
Regarding US President-elect Donald Trump's trade tariffs, he mentioned that Trump might leverage tariffs as a negotiation tool to secure open trade agreements.
“Emerging markets such as India have the potential to gain from this situation, as there is a limit to how much investors would want to allocate their funds in the US market. Additionally, opportunities in emerging markets are flourishing,” he added.
Mobius expressed a cautiously optimistic perspective on both global and Indian economic trends, influenced by various cyclical and structural factors. He believes that the easing of the Russia-Ukraine conflict and reduced strife in the Middle East could enhance global growth prospects.
