Mark Mobius finds opportunity in weaker Rupee to help export-oriented firms

NEW DELHI : A weakening rupee may hinder foreign investment inflows into India, but it could offer a boost to export-oriented companies by enhancing their competitiveness against China, according to Mark Mobius, Chairman of the Mobius Emerging Opportunities Fund.

“In light of the currency situation, export-oriented companies are particularly worth considering,” Mobius remarked on Friday. “Additionally, India is steadily gaining an edge over Chinese exporters, which further strengthens their position.”

Infosys, for example, which exports a lot of software, is going to become more competitive because of the weakening rupee, he said. “We are on the cusp of more exports coming out of India, not only in the software area but also in manufacturing.”

Mark Mobius, chairman of the Mobius Emerging Opportunities Fund, anticipates that Indian markets and domestic industries will benefit more from the Trump administration than any other country, citing India as the natural alternative to China for manufacturing. He also believes Prime Minister Shri Narendra Modi’s reforms will pave the way for a strong partnership with the United States.

“Where else can investors look overseas? India consistently stands out due to its remarkable growth, the ongoing reforms under the current government, and the substantial value in its markets,” Mobius stated. “My personal goal is to have 50% of my investments in India,” he added.

Mark Mobius noted that many Indian stocks with a US dollar income component are likely to perform well despite currency fluctuations.

Analysts, however, predict that the rupee’s depreciation will persist, driven by the strength of the dollar and India’s widening trade deficit.