Ace Investor Mark Mobius Bullish On India's Semiconductor, Real Estate Sectors

Mark Mobius, an emerging market expert and an ace investor, reiterated he was bullish on India's real estate and semiconductor sectors, as he outlined the potential of these two key industries.

"Standard of living is going up and people want homes and you got to meet the supply," said Mobius, Chairman, Mobius Emerging Opportunities Fund. Mobius also doubled down on his bullishness on real estate.

In the semiconductor space, he said fabrication companies (fabs) will come here because India has got the population and the labour force.
 

The octogenarian believed India will become the leader of the semiconductor industry.

"I think India will become a leader or the leader in semiconductor production in the future, and the reason why I say that is first of all the demand, secondly it's an open economy. Thirdly, India has an incredible software industry already," said Mobius. 

The government has so far approved five semiconductor units in India, of which construction in two sites is on, and soon the work in the other three will start.

The companies have already made a cumulative investment of almost Rs 1.5 lakh crore.

Further, Mobius also lauded India's GST taxation system, given the challenges that come with being a diverse country. "The unification (in taxes) is remarkable," Mobius said.

The Goods and Services Tax was introduced in the country with effect from July 1, 2017, simplifying various procedures and reducing cascading effects.

While talking about the parameters he looks at while investing in companies, Mobius said he looks at the growth of earnings in companies, along with the return on capital invested, and the quality of management. (ANI)