India is now “emerging as something very exciting,” thanks in part to technology and government policies, according to Mark Mobius.
“Right now, we’re focusing more and more on India,” Mobius, a founding partner 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 trailblazer in emerging markets.
“In many ways I call it the ‘United States of India’ because these Indian states are so different from one another. And that is creating an incredible opportunity for growth,” he said.
“India is really emerging as something very exciting.”
Investors looking to participate in 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 that are in the software business, as you know, Tata is global, they are all over the world,” said the investor, referring to the conglomerate with myriad businesses ranging from consulting services in information technology for automobiles.
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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 like tech giant Apple recognize the need to diversify their manufacturing base and move to the South Asian nation. . Mobius did not name any specific company in this category.
The Indian markets have seen huge gains over the past two years, with the Nifty 50 and BSE Sensex indices rising over 20% each in 2021 alone. However, like most global markets, both indices are currently in negative territory so far this year as investors scramble for safety against fears of an impending recession as major Western central banks tighten monetary policy to fight inflation.
Elsewhere in emerging markets, Mobius said he also likes Taiwan, home to companies like 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 the chips is created in Taiwan, and that’s where we’re focusing,” Mobius said.
Source: www.cnbc.com