Billionaire investor Mark Mobius on Thursday said that the upcoming 50 per cent tariffs on India, announced by US President Donald Trump, are unlikely to significantly impact the country, thanks to its massive domestic market and relatively lower dependence on exports compared to China.
Speaking to IANS, Mobius – who manages the Mobius Emerging Markets (EM) Opportunities Fund – said that India is better positioned than many other nations to withstand the effects of the new tariffs.
“India has a huge domestic market and does not rely on exports like China. Moreover, Indian software exports are doing well and remain unaffected by tariffs,” he noted.
“Conclusion: no big problem for India,” Mobius stated.
Currently, shipments worth more than $30 billion – including pharmaceuticals and electronic items such as smartphones, semiconductors, and energy products – remain exempt from the new tariffs. These key industries have not yet been included in the list of goods subject to the 50 per cent duties, which are scheduled to come into effect within the next 21 days.
In FY25, India exported drugs and pharmaceuticals worth $10.5 billion and electronics products (primarily smartphones) worth $14.6 billion to the US, together accounting for 29 per cent of India’s total exports to the country. Petroleum exports, which stood at $4.09 billion, are also shielded from the new tariffs due to energy products being part of the exemption list.
India’s total exports to the US in FY25 stood at $86.51 billion.
Mobius added that India’s strong economic growth will further support its resilience and global ascent.
“The country is witnessing 6-7 per cent GDP growth despite global uncertainties, which reflects the resilience of its economy. This momentum will help India continue climbing the global economic ranks,” he said.
(IANS)
