New Delhi’s recent trade breakthrough with the European Union has lit a fire under US negotiators, billionaire investor Mark Mobius revealed on Wednesday. Speaking exclusively, the veteran fund manager said the EU agreement played a pivotal role in accelerating America’s long-awaited trade deal with India.
Mobius highlighted the personal rapport between Prime Minister Narendra Modi and former President Donald Trump as a facilitating factor, but stressed that the real heavy lifting came from seasoned negotiators on both sides. ‘This isn’t some ‘Father of All Trade Deals’,’ he clarified, dismissing hyperbolic labels.
Instead, he pointed to India’s EU free trade pact as potentially more consequential. India’s bold move to advance ties with Europe underscores its strategic autonomy, likely prompting the US to fast-track its own commitments.
On the broader economic canvas, Mobius exudes optimism about India’s trajectory. ‘India is firmly on track to become the world’s third-largest economy,’ he asserted, citing superior growth rates compared to peers like Brazil and South Africa.
Demographic dividends shine bright: a youthful population and rapid urbanization are forging a massive consumer market. Coupled with surging exports, these tailwinds promise sustained high growth.
Stock markets present a more cautious picture. Mobius doubts the Sensex hitting 100,000 this year, calling a 20% surge ‘unlikely’ amid current realities. Yet, he remains bullish on India’s fundamentals, advising investors to focus on long-term potential over short-term spikes.