New Delhi: Billionaire investor Mark Mobius said on Wednesday that India’s recent trade engagement with the European Union played a key role in pushing the United States to speed up its own deal with New Delhi.
While he believes friendly ties between Prime Minister Narendra Modi and US President Donald Trump helped, Mobius made it clear that the agreement was mainly shaped by negotiators from both sides.
In an interaction with IANS, Mobius said the India-US trade deal should not be described as the “father of all trade deals.”
“The Free Trade Agreement with the European Union is likely to be more significant in comparison,” the ace investor told IANS.
He suggested that India’s decision to move ahead with the EU agreement showed independence and may have encouraged the US to act more quickly in finalising its own understanding with India.
When asked whether Prime Minister Modi managed to secure a favourable deal from the US due to his cordial relationship with Donald Trump, Mobius said the agreement was worked out by teams of negotiators on both sides.
“However, that friendly relations between the two leaders certainly helped smooth the process,” he told IANS.
On India’s economic growth, the veteran investor sounded confident. He said India is definitely on track to become the third-largest economy in the near future.
He pointed to the country’s strong growth momentum compared to other major emerging economies.
Speaking about the stock markets, Mobius said it is difficult to predict whether Indian markets can touch the 100,000 mark this year.
At the current stage, he feels such a sharp rise may not be possible, as it would require around a 20 per cent jump, which seems too steep for now.
Mobius also highlighted the key drivers that could help India maintain robust economic growth.
“The country’s young population and rapid urbanisation are creating a massive consumer base. At the same time, rising exports are strengthening the economy,” he stated.
“These factors will help India sustain high levels of growth in the coming years,” he mentioned.
(IANS)
