Mumbai: Bureaucratic red tape is the biggest hurdle in India, said Mark Mobius, founding partner of Mobius Capital Partners, adding India needs to resolve this issue.

“Red tape is the biggest hurdle in India to move things forward. There are changes that could be done very easily and effectively. We have already seen the effective impact in GST," Mark Mobius said in an interview on the sidelines of Morningstar Investor Conference.

“Indian investors are getting bigger and bigger but they also get fearful, and when they see the markets falling, they just pull back. Usually, they freeze up which is why it is so critical for the government to move quickly to allow people like me to come in," he said.

“Of course, we are not big, but we can put $20 million," he said, adding that his firm had raised $160 million to start with.

Mobius said there are a lot of opportunities in India and his company sees prospects in small and medium-sized companies in the listed space.

“We are sitting down with these companies and making them aware that their balance sheet is good, they have good business with a strong management but not recognized by the market," he said.

“We are making them aware of the ESG (Environmental, societal and governance) norms. We started conversations with these companies that we have identified. We are following similar models in other countries too including China, India, Africa," Mark Mobius said, adding that a lot of these companies are family-owned and going through a process where the young generation is taking over, which is trained and open to such norms.

Mobius was also of the view that said India could reap the benefits of a weaker rupee. “With the rupee (being) weaker, exports become more competitive," he said.

“Also, I believe that it is about time the government takes advantage of the Chinese trade war," Mark Mobius said, adding the approval process for manufacturing in India needed to be fast-paced.

The rupee has depreciated 13.44% so far this year and currently trades at 73.79 per US dollar. A falling rupee, together with boiling oil prices, has been a headache for the government because it affects macro-economic parameters a few months ahead of general elections.

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