India Well-Shielded From US Tariff Heat, Says Billionaire Investor Mark Mobius; Here's What It Means

“India has a huge domestic market and does not depend on exports like China. Also, Indian software exports are great and escape tariffs,” Mobius noted

Mark Mobius manages the Mobius EM Opportunities Fund, focused on emerging markets

Source : MarkMobius.com

India’s economy is well-positioned to handle the blow from the new 50 per cent tariffs announced by US President Donald Trump, billionaire investor Mark Mobius said on Thursday. According to Mobius, India's large consumer base and low dependence on exports offer a natural buffer against such external shocks.

In a conversation with IANS, Mobius, who manages the Mobius EM Opportunities Fund focused on emerging markets, remarked that India’s internal strengths set it apart from other economies like China when it comes to withstanding tariff-related impacts.

“India has a huge domestic market and does not depend on exports like China. Also, Indian software exports are great and escape tariffs,” he noted.

Many of India’s critical exports, worth over $30 billion, are currently insulated from the upcoming US tariff hikes. Pharmaceutical products, smartphones, semiconductors, and petroleum goods are among the items listed under exemptions. This means that, for now, exports in these categories won’t face the brunt of Trump’s fresh trade restrictions.

India’s shipments of electronics and pharmaceuticals alone amounted to $14.6 billion and $10.5 billion, respectively, in FY25, making up nearly 29 per cent of the country’s total exports to the US. Petroleum products, with exports worth $4.09 billion, also enjoy protection under the energy exemption clause.

Resilience Backed By Growth Momentum

Mobius further stressed that India's ongoing economic momentum and predicted its continued rise on the global economic leaderboard. “Conclusion: no big problem for India,” Mobius told IANS.

“The country is witnessing 6-7 per cent growth despite global uncertainties, which shows the resilience in its economy. It will help India continue to move up the ladder,” he added.

India’s Economy's Global Growth

India's economic growth has been remarkable. In a few short years, it has surged ahead from the 11th-largest economy to currently being ranked fourth globally, just behind the United States, China, and Germany. With sustained growth and strategic trade planning, experts believe India is well on its way to becoming the third-largest economy.