Mark Mobius on investor tips for India’s incredible growth opportunity

According to Mark Mobius, India is now “emerging as something very exciting”, thanks in part to technology and government policies.

“Right now, we are increasingly focusing on India,” Mobius, founder of Mobius Capital Partners, told CNBC’s “Squawk Box Asia” on Tuesday. The veteran investor made a name for himself at Franklin Templeton and is seen as a pioneer in emerging markets.

“In many ways I call it ‘United States of India’ because these Indian states are so different, one from the other. And that creates an incredible growth opportunity,” he said.

“India is really emerging as something very exciting.”

Investors looking to take advantage of this opportunity can gain exposure through the Indian stock markets, with a particular focus on technology, Mobius said.

“There are a number of world-class Indian companies operating in the software sector – as you know, Tata is global, they are all over the world,” said the investor, referring to the conglomerate with numerous companies ranging from consulting services to information technology for cars.

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He added that a number of other Indian companies that are already “very, very big” in the global software market are now entering the hardware space as companies such as tech giant Apple recognize the need to diversify their manufacturing base and move to the South Asian nation. to move. † Mobius did not name specific companies in this category.

Indian markets have seen huge gains in the past two years, with the Nifty 50 and BSE Sensex indices both rising more than 20% in 2021 alone. Like most global markets, however, both indices have been in negative territory so far this year as investors scramble for safety against fears of an impending recession, while major western central banks tighten monetary policy to curb inflation. to fight.

Elsewhere in emerging markets, Mobius said he also likes Taiwan, home to companies such as chip powerhouse TSMC. It’s a place he described as “having all the best parts of Chinese culture,” an open society, and “incredible creativity.”

“A lot of the software that goes into chips is made in Taiwan, and that’s what we’re focusing on,” says Mobius.

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