India has Potential to Become World's 2nd-Largest Economy: Mark Mobius

According to the latest estimates from the International Monetary Fund (IMF), India's real GDP is projected to reach $4.3 trillion by 2025, placing it just behind Japan's $4.4 trillion and Germany's $4.9 trillion. With its current growth trajectory, India is expected to surpass Japan this year and Germany by 2027.

Billionaire investor Mark Mobius stated on Wednesday that India not only ranks as the world's third-largest economy but also has the potential to become the second-largest if it continues on its path of resilience and consistent policy implementation. In recent years, India has advanced from being the 11th largest economy to the fifth largest globally. By 2025, it is expected to maintain its position as the fifth-largest economy, following the United States, China, Germany, and Japan in total GDP.

Mobius shared with IANS that India has the potential to become the second-largest economy in the world. He noted, "India now has a significantly larger population than China, which is estimated to be around 800 million or less, with an average age that is much higher than India's 1.2 billion people."

He emphasized that if India can eliminate both tariff and non-tariff import restrictions, the manufacturing sector would thrive, leading to robust economic growth. Mobius, who manages the Mobius EM Opportunities Fund focused on emerging markets, also commented on the recent performance of the Indian stock market amid global uncertainties. He pointed out that the Indian stock market had already seen a significant correction prior to the US trade restrictions.

Mobius suggested that investors should consider gradually averaging into quality stocks, and for those already holding stocks, it would be wise to maintain their positions and wait for a market recovery. The Indian stock markets have recently experienced a remarkable rebound, with a single-day rally on Tuesday adding an impressive Rs 11 lakh crore to investors' wealth, effectively reversing the losses incurred following the US tariff shock on April 2. This recovery was broad-based, driven by strong investor sentiment, favorable global cues, and optimism within the domestic market.

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