This veteran investor bets big on India amid equity selloff; says economy may revive in couple of yrs

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Updated: September 2, 2019 1:32:58 PM

Even as the Indian economy sees a downturn, it’s a good time to invest with a long-term view, a veteran emerging market fund manager said.

Dollar, market, Fed verdict, pound, trade conflict, market news, Federal Reserve, Jerome Powell, The economy is expected to grow in the long-term, but there is a lot of confusion on account of taxation, Mark Mobius, founder of Mobius Capital Partners LLP said.

Even as the Indian economy sees a downturn, it’s a good time to invest with a long-term view, a veteran emerging market fund manager said. The economy is expected to grow in the long-term, but there is a lot of confusion on account of taxation, Mark Mobius, founder of Mobius Capital Partners LLP said in an interview to CNBC-TV18. The government’s move to rollback FPI is a welcome step, but the growth can only be revived in the coming year or two as the internet revolution is hitting every country including India, he added. FPIs pulled out a net amount of Rs 5,920 crore from the capital markets in August. The FPIs are on a selling spree after July 5 when Finance Minister announced imposition of an additional surcharge on FPIs in the budget. India is right at the top on his investment list.

“India’s slowdown is because of internal and external factors. 50 percent of India’s problems are because of indigenous problems. We will look for lower taxes in India and bringing in foreign investors in infrastructure will be key,” he also told CNBC TV18.

Also read: FPI surcharge rollback fails to cheer foreign investors as outflow from equities continue

On the ongoing slowdown, Mobius said that both internal and external factors are at play. “50% of India’s problems are because of indigenous problems. We will look for lower taxes in India and bringing in foreign investors in infrastructure will be key,” the expert noted.

Meanwhile, Finance Minister Nirmala Sitharaman last week Yesterday announced a move to merge PNB, OBC, United Bank to create India’s second largest govt bank in a bid to realise India’s $5 trillion economy dream. Further, the government has decided to amalgamate seven other PSU banks into three big lenders

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