New US tariffs no big problem for India which has huge domestic market: Mark Mobius

New Delhi, Aug 7 (IANS) Billionaire investor Mark Mobius said on Thursday that upcoming 50 per cent tariffs on India, imposed by US President Donald Trump, will have less impact on the country as it has a massive domestic market to cushion itself, and does not fully depend on exports like China.

Speaking to IANS, the global investor who runs the Mobius EM Opportunities Fund for emerging markets (EMs), said India is in a good position to navigate these tariffs than other nations.

“India has a huge domestic market and does not depend on exports like China. Also, Indian software exports are great and escape tariffs,” he noted.

“Conclusion: no big problem for India,” Mobius told IANS.

Shipments worth more than $30 billion involving pharmaceuticals and certain electronic items such as smartphones, semiconductors, and energy are so far secure from higher duties as these are still under an exemption list. Trump has not yet included these key industries in the new tariffs that are slated to come into effect in the next 21 days.

Moreover, India exported drugs and pharmaceuticals as well as electronics products (mostly smartphones) to the tune of $10.5 billion and $14.6 billion in FY25, constituting 29 per cent of its overall outbound shipments to the US. Petroleum exports, worth $4.09 billion in FY25, are also currently secure from Trump’s fresh tariffs thanks to energy being on the exemption list as well.

Indian exports to the US stood at $86.51 billion in FY25.

According to Mobius, the kind of GDP growth India is witnessing will help it on the road to become the third-largest economy in the world.

“The country is witnessing 6-7 per cent growth despite global uncertainties which shows the resilience in its economy. It will help India continue to move up the ladder,” said Mobius.

In just a few years, India has risen from being the world’s 11th-largest economy to the fourth largest. As of 2025, India trails behind the US, China and Germany in terms of total GDP.

–IANS

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