icon bookmark-bicon bookmarkicon cameraicon checkicon chevron downicon chevron lefticon chevron righticon chevron upicon closeicon v-compressicon downloadicon editicon v-expandicon fbicon fileicon filtericon flag ruicon full chevron downicon full chevron lefticon full chevron righticon full chevron upicon gpicon insicon mailicon moveicon-musicicon mutedicon nomutedicon okicon v-pauseicon v-playicon searchicon shareicon sign inicon sign upicon stepbackicon stepforicon swipe downicon tagicon tagsicon tgicon trashicon twicon vkicon yticon wticon fm
13 Nov, 2019 09:51

India heading for ‘tremendous’ growth & Moody’s downgrade is wrong, says legendary investor Mark Mobius

India heading for ‘tremendous’ growth & Moody’s downgrade is wrong, says legendary investor Mark Mobius

The decision by rating agency Moody’s to change its outlook on India from stable to negative was a mistake, since the country is enjoying “incredible” growth compared to many other states, veteran investor Mark Mobius has said.

“I think Moody’s call was erroneous, I don’t think it was called for because I see tremendous growth coming in India going forward,” Mobius, the emerging markets fund manager and founding partner of Mobius Capital Partners LLP, told CNBC. “I believe that a lot of the reforms are going to really begin to kick in and have a big impact on the economy going forward.”

Last week, Moody’s explained its decision to lower India’s outlook by what is sees as lower government and policy effectiveness in addressing “economic and institutional weaknesses.” New Delhi was quick to point out that the country is one of the fastest growing major economies in the world.

Also on rt.com Russia, China & India to set up alternative to SWIFT payment system to connect 3 billion people

India’s GDP grew by five percent between April and June, which is three percent lower than in the same period last year. However, these figures are impressive enough in the current situation in the global economy, Mobius said in an earlier interview.

“When we talk about slowdown, five percent growth is incredible when you compare with what is happening in other parts of the world,” he told CNBC-TV18’s Manisha Gupta. He noted that the ratings agency could have been “too sensitive” to the idea that India is set to slow down, adding that he does not believe this.

Indian Prime Minister Narendra Modi has recently set an ambitious target of becoming a $5 trillion economy in the next five years. Initially, many doubted that the $5 trillion goal could be achieved, with falling demand and India’s multi-sector slowdown only causing more concerns.

Also on rt.com India set to eclipse US with global economic growth share by 2024

There are still issues that the south Asian power needs to address to support its growth, according to the legendary investor. For example, the country should improve infrastructure to create the ability to grow and export; and issue bonds, including in foreign currency.

Mobius stressed that India and China are among the countries that are driving the growth of the emerging markets and that trend is unlikely to change any time soon.

For more stories on economy & finance visit RT's business section

Podcasts
0:00
26:13
0:00
24:57