India has the potential to become the world’s second-largest economy if it continues on its current path of resilience and policy continuity, according to billionaire investor Mark Mobius.
In recent years, India has surged from being the 11th-largest economy to the fifth-largest. As of 2025, it remains behind only the US, China, Germany, and Japan in terms of total GDP.
According to the latest IMF estimates, India’s real GDP is expected to reach $4.3 trillion in 2025—just behind Japan’s $4.4 trillion and Germany’s $4.9 trillion. On its current trajectory, India is projected to surpass Japan this year and overtake Germany by 2027.
Speaking to IANS, Mobius said India could potentially rise to the second spot globally.
“India now has a substantially larger population than China. It’s now estimated that China’s population may be 800 million or less, with an average age much higher than India’s 1.2 billion people,” he said.
He added that if India removes import restrictions—both tariff and non-tariff—the manufacturing sector could thrive, driving the economy forward.
Mobius, who runs the Mobius EM Opportunities Fund for emerging markets, also commented on India’s stock market performance amid global uncertainties. He noted that even before US trade restrictions came into play, the Indian market had undergone a significant correction.
“There will be a recovery in the market, so it’s a good time for investors to begin averaging into strong stocks. For those already holding, it’s best to wait and ride out the recovery,” he advised.
Indian markets made a remarkable comeback recently, with a single-day rally on Tuesday adding Rs 11 lakh crore to investors’ wealth—wiping out all losses triggered by the US tariff shock on April 2. The recovery was broad-based, driven by strong investor sentiment and upbeat global and domestic cues.
-IANS
