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, founding partner of Mobius Capital Partners, told CNBC.Squawk Box Asia” tuesday. The seasoned investor made a name for himself at Franklin Templeton and is considered a pioneer in emerging markets.
“In many ways, I call it ‘United States of India’ because these Indian states are so different from each other. And that creates an incredible opportunity for growth,” he said.
“India is really emerging as something very exciting.”
Investors looking to seize this opportunity can gain exposure to Indian equity 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,” the investor said, referring to the conglomerate with a myriad of businesses ranging from information technology consulting services at automobiles.
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 the tech giant Apple recognize the need to diversify their manufacturing base and relocate to the South Asian nation. Mobius did not name specific companies in this category.
Indian markets have seen strong gains over the past two years, with the Crafty 50 and the BSE Sensex indices have both risen more than 20% each in 2021 alone. Like most global markets, however, both indices are currently in negative territory so far this year, with investors rushing to hedge 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 such as the 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 what we focus on,” Mobius said.
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