New Delhi [India], October 21 : Mark Mobius, an emerging market expert and an ace investor, reiterated he was bullish on India's real estate and semiconductor sectors, as he outlined the potential of these two key industries.
Speaking at the NDTV World Summit 2024 on Monday here in the national capital, Mobius, Chairman of Mobius Emerging Opportunities Fund, said that the standard of living in India is going up and he believes it will create new demands for real estate.
"Standard of living is going up and people want homes and you got to meet the supply," Mobius doubled down on his bullishness on real estate.
In the semiconductor space, he said fabrication companies (fabs) will come here because India has got the population and the labour force.
The octagenarian believes India will become "the leader" of the semiconductor industry.
"I think India will become a leader or the leader in semiconductor production in the future, and the reason why I say that is first of all the demand, secondly it's an open economy. Thirdly, India has an incredible software industry already."
The government has so far approved five semiconductor units in India, of which construction in two sites is on, and soon the work in the other three will start.
The companies have already made a cumulative investment of almost Rs 1.5 lakh crore.
Further, Mobius also lauded India's GST taxation system, given the challenges that come with being a diverse country. "The unification (in taxes) is remarkable," Mobius said.
The Goods and Services Tax was introduced in the country with effect from July 1, 2017, simplifying various procedures and reducing cascading effects.
While talking about the parameters he looks at while investing in companies, Mobius said he looks at the growth of earnings in companies, along with the return on capital invested, and the quality of management.
Asked about his investment advice to his "younger self," Mobius said, "Don't be in a rush, and study carefully". He added that one has to listen to the market.
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