India Set to Outpace Other Emerging Markets

Investor Mark Mobius of Templeton Asset Management recently expressed the opinion that Indian shares may "outpace" other emerging nations as the country continues to show strong economic progress.

"India's macroeconomic fundamentals have significantly improved," he said during a question and answer session on the company's website while discussing the future of the world's four largest developing countries - namely Brazil, Russia, India, and China; also known as the BRICs.

Mr. Mobius, who manages US$34 billion in developing-nation assets, also commended the Indian government on guiding their country through the global recession.

"The government has done a good job in managing the economy through the recent crisis," he said. "Unlike companies in the U.S. and Europe, most companies have healthy balance sheets and strong cash flows."

Despite the optimism in the long term, Mr. Mobius also cautioned that the BRIC nations may face short-term volatility.

After finishing among the top 10 performers in 2009 with gains of 81 percent, India's Bombay Stock Exchange (BSE) Sensitive Index has fallen 4.7 percent so far this year.

This article was written for the India business news website, India-Briefing.com. The site is contributed to by Dezan Shira & Associates who maintain business advisors and accountants in Mumbai and other Indian cities.

Dezan Shira also write for the Vietnam business news website, Vietnam-Briefing.com.