India Will Outpace China Among Emerging Markets, Says Investor Mark Mobius

Veteran investor Mark Mobius has reaffirmed his confidence in India’s growth story, declaring that China will not be able to overtake India among emerging markets. Speaking to the Financial Times, Mobius revealed that nearly 20% of his investment portfolio is allocated to India, underlining its long-term potential.

Despite recent headwinds, including US tariffs on Indian exports and market volatility, Mobius stressed that India’s fundamentals remain strong, driven by robust domestic demand, ongoing government reforms, and an adaptable entrepreneurial ecosystem.

In a conversation with The Economic Times, he acknowledged that sectors such as pharmaceuticals, gems, and apparel may face pressure from US President Donald Trump’s 50% tariff on exports. However, he expressed confidence that Indian companies would adjust. “Indian entrepreneurs are very creative. I think they will be able to get around some of these problems, even if it means shifting part of their manufacturing to regions like Africa,” he noted.

Mobius estimated the overall impact of tariffs on India’s economy would be limited, potentially shaving off just 0.5% to 0.75% of growth. “Even if growth slips from 6% to 5.5%, it’s not a major concern given the size and strength of the domestic market,” he added.

On energy, Mobius argued that Washington should not unfairly target India over Russian oil imports, highlighting that China is importing similar volumes. He suggested that dialogue between New Delhi and Washington would likely resolve such disputes, especially as global crude prices ease.

The investor also pointed to the weaker rupee as an advantage for exporters and said government measures would help cushion any shocks. “The Indian market looks healthy. The economy is still doing very well. Eventually, India and the US will reach an agreement because this situation cannot last long,” he concluded.

Also Read: China Marks 80 Years Since WWII Victory with Mighty Military Parade