Mark Mobius, founder of Mobius Capital Partners and an emerging markets fund manager, stated that manufacturers aiming to decrease their reliance on China and shift to India instead create a win-win situation for both China and India.
What Happened? In an interview with China Business News, billionaire investor Mark Mobius stated that India’s rising appeal as a manufacturing alternative to China could potentially benefit both countries. He shared his insights on Twitter, portraying the shift as a potential win-win situation rather than a threat to China.
According to Mobius, India is a medium to long-term opportunity for companies seeking substantial productivity. He expects more businesses, including global Chinese firms, to move to India to diversify their manufacturing bases. However, he does not see this as a decrease in China’s manufacturing.
Mobius emphasises that India must ramp up infrastructure investments and fast-track digitalisation to sustain its high growth rate on a low base, drawing parallels to China’s situation a decade ago.
Currently, a significant portion of Mobius’ fund allocation goes to India. In a February interview with CNBC, he expressed optimism about India’s IT sector, suggesting that the country could soon have a major role in global semiconductor production.
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Reacting to Hindenburg Research's report on Adani Group, Mobius advised investors to rethink passive investing. Despite the report’s criticisms, he was pleased with the quick rebound of Indian markets and cautioned against indiscriminately criticizing all Indian companies.
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