See strong growth prospects for India & China: Mark Mobius

SINGAPORE/NEW DELHI: Expressing great faith in the growth prospects of both India and China, Mark Mobius of Templeton Emerging Markets Fund told ET Now that he was positive on the economies of both the countries. "I expect a strong growth rate in Indian and China," he said.

Mobius was of the opinion that the Indian economy can grow despite high interest rates. His opinion was backed by the fact that individual states in India have been pursuing investor-friendly policies.

He feels that the key factor than can turn around the 'negative' sentiment towards the Indian economy is the predictability of government plans and their execution. "Investors don't want to invest when there is uncertainty," he added.

Mobius said that the Chinese economy is likely to grow at 8%, surpassing the government estimate of 7.5%. Mobius expects an average growth rate of 5% for emerging economies.

Asked about the Indian markets, he felt that the valuations in India are 'not very high' right now. He expressed bullish sentiment on sectors such as software data, natural resources and consumption. With a young population, Mobius was positive about the consumption theme in the Indian economy.

Read full interview: Emerging markets looking very good, says Mark Mobius


Mobius was bullish on emerging market stocks and said that with the global money supply increasing, it was important to invest in equities as a hedge against inflation. "It is a good time to invest in equities," he said.

Mobius is currently buying into emerging markets. "The debt levels of emerging markets are very low, valuations at 10x P/E are also low," he said.

Mobius was sure that the Federal Reserve will continue with easing the monetary policy. "Ben Bernanke is convinced that the US economy needs stimulus to prevent the problems that occurred in 1930s," he opined.