Global manufacturers want to diversify away from China as it struggles to contain the coronavirus outbreak and India could be the answer, according to veteran investor Mark Mobius.
The founder of Mobius Capital Partners said in an interview with the Economic Times that when the global markets are in panic mode, investors should focus on dividend-paying companies that look like they will continue to pay dividends, and gold.
“China is now the world’s largest manufacturing centre and companies all over the world depend on Chinese raw materials and parts,” Mobius said. Therefore, the fact that the virus began in China and has had its greatest incidence there is critical for the entire global industrial system.
According to the investment guru, “It is very important, therefore, for the Indian government to open its doors widely to such industries for investment in India.”
The Associated Chambers of Commerce and Industry of India (ASSOCHAM) also said this week that the country’s exporters could push supplies on the global market to fill gaps left by neighboring China due to the coronavirus outbreak.
According to ASSOCHAM, there are several areas with increased opportunities for domestic traders.
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