Mark Mobius (Founding partner, Mobius Capital Partners) shared his take on investment in India from an emerging markets‘ frame of reference.
Mark Mobius Take On Investment In India
But anyway let me talk about what we're doing of course. As you know I've written a number of books so I recommend that you know if you're interested pick up some of my books particularly my comic book that was done in Japan many years ago. But what I want to get through to you today is about change. As we've seen you see the world change. Up the emerging markets worldwide. And if you look at where we were in Shanghai twenty five years ago. This is what it looked like you know across the river you can see Pudong which is now a big this is. And it looks like this. This is food. Today the tremendous change we've seen in China not only in China. In Dubai we used to have an office in the distance there. That tower the distance. Today Dubai looks like this. It's just incredible. And of course if you went to Kuala Lumpur 25 years ago this is what it looks like. And today it's this. By the way those two towers. Malaysia was very proud of those two towers because they were the tallest in the world for a while. And then of course Dubai built the toll that tower. And someone. Asked Dr Mahathir who as you know is now prime minister in Asia and he was responsible for this development he said. Dr Mahathir see you've got something that's taller than your towers. And he said yeah but we've got to. Get his head back in 1987 when we saw the emerging markets fund.
This is what the world looked like those yellow areas were the areas where we could invest. We had only six markets in which to invest. Mexico. And a few of the Asian countries Hong Kong, Malaysia, Singapore so today this is what it looks like. It's an incredible we are now able to invest in over 70 countries around the world and it covers all of Asia. Of course now Soviet Union is now Russia. You've got China that's opened up all of Latin America just quite credible. The changes have taken place. Now why are we in emerging markets. Well the key word is growth. A lot of people you know when the markets are down they forget. The fundamental. Message is growth. And if you look at the growth of emerging markets. 20 17 last year emerging markets grew an average of four point eight percent. India much more than that. Whereas the developed countries much much less and less than half. Of the emerging markets growth. And if you look at. What's happening in terms of the labor force you see that emerging markets have a much younger labor force entering the most productive years of their lives. And this is what's so exciting to me as I travel around these emerging markets. The other interesting thing is about frontier markets a lot of people think frontier markets and say well they're pretty underdeveloped too. Slow. No. They are actually growing very very fast. And this gives you a list of all the frontier markets in dark blue.
That are growing at an incredible fast rate intertwined in there you can see India, China, Philippines that more or less in that leak in terms of growth. Most of these countries are frontier markets. Another big growth area. The other fact of course no thing that people tend to forget is size. Emerging markets are in many many ways.