'China can't beat India's growth, economy going strong': Ace investor Mobius

India remains the top emerging market and China cannot beat India’s growth, investor Mark Mobius said in an interview with the Financial Times, who has allocated nearly 20 per cent of his portfolio to the country.

Despite US tariffs on Indian exports and short-term volatility, Mobius emphasised India’s domestic demand, government reforms, and entrepreneurial resilience will keep it ahead of other emerging markets.

Speaking to The Economic Times, Mobius said that while sectors like pharmaceuticals, gems, and apparel may feel the pinch of US President Donald Trump’s 50 per cent tariff on exports, Indian businesses are agile enough to adapt by shifting manufacturing to other markets such as Africa. “Indian entrepreneurs are very creative. I think they will be able to get around some of these problems,” he said.

He added that the overall hit to growth would be minimal, “At most, exports may shave off 0.5 per cent to 0.75 per cent from economic growth. But India’s domestic market is enormous and still expanding rapidly. Even if the growth estimate falls from 6 per cent to 5.5 per cent, it’s not a big issue.”

More from India

India identifies nearly 50 export destinations to counter Trump tariffs as US issues levy notice Trump's India tariffs take effect, nearly half of $87.3 bn of exports under 50% levy

On energy, Mobius said that Washington should not single out New Delhi for Russian oil imports, pointing out that China is buying just as much. He suggested negotiations could smooth out these differences, especially as global crude prices have dropped.

He also highlighted the weaker rupee as a positive for exporters and noted that government support measures will cushion the blow. “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,” Mobius stressed.