India has serious economic problems, real estate a good buy: Jim Rogers

NEW DELHI: Opining that India has serious macro-economic problems, Jim Rogers, Chairman of Rogers Holdings told ET Now that there is a need to abolish capital controls and cut subsidy spending in the country. "I would love to abolish capital controls in India," he said.

While admitting that India has been an extraordinary country, Rogers said that the Balance of Payments (BoP) crisis will weigh on the rupee. "There is a problem of financing the BoP," he said. "I am short on EMs like India and Indonesia," he added.

Rogers is bullish on agri products, among which sugar is his top pick. Stating that one needs to own real assets in India, Rogers said that agricultural land will be a good investment alternative. "Buy agri property in a place that has not been subject to a bubble, don't buy property in a financial district," he advised.

Asked about commodity prices, Rogers said that an escalation of tensions in Middle-East is keeping oil prices high. "I am not buying oil and gold in the West right now," he told ET Now.

"I bought some gold when price fell to levels of $1,200/oz," he said. "I am waiting for gold to cool-off before buying," he added.

On the issue of the expected QE tapering by the US Federal Reserve, Rogers said that the central bank may start cutting back in the next couple of weeks. "When the Fed starts withdrawing QE we will all suffer," he felt. However, Rogers went on to say that while the Fed might start easing a little, the inflicted pain may cause it to pause the tapering process for some time.