India Could Overtake China as World’s Second-Largest Economy

Blitz Bureau

New Delhi, April 16 : Billionaire investor Mark Mobius believes India has the potential to become the world’s second-largest economy if it maintains its current momentum and policy direction.

India has already climbed from the 11th to the 5th spot globally in just a few years. As of 2025, it trails only the US, China, Germany, and Japan, with a projected real GDP of $4.3 trillion. According to IMF data, India is expected to surpass Japan this year and Germany by 2027.

Mobius noted that India’s demographic advantage gives it an edge over aging economies. “India now has a substantially larger population than China,” he said. “China’s real population may be closer to 800 million, with a higher average age, while India has a younger, 1.2 billion-strong population.”

He argued that dismantling import restrictions would unlock a manufacturing boom and accelerate economic growth further. “If India is able to tear down import restrictions, the economy will go from strength to strength,” said Mobius, who manages the Mobius EM Opportunities Fund.

On the stock market, Mobius remains optimistic. Despite recent global pressures, he sees signs of recovery and encourages investors to hold or gradually accumulate quality stocks. “Even before US trade restrictions, the market had corrected significantly. Now is a good time to start averaging into good stocks,” he said.

His comments came after Indian markets rebounded sharply, with Tuesday’s rally adding Rs 11 lakh crore in investor wealth and wiping out losses from the April 2 US tariff scare. The bounce was supported by strong global cues and robust domestic sentiment.

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