New US Tariffs Not a Major Concern for India Due to Its Vast Domestic Market: Mark Mobius

New Delhi – Billionaire investor Mark Mobius believes that the upcoming 50% tariffs on Indian goods, announced by US President Donald Trump, are unlikely to significantly impact India’s economy. According to Mobius, India's large domestic market and limited reliance on exports, unlike China, provide it with a strong buffer.

Speaking to IANS, the founder of the Mobius Emerging Markets Opportunities Fund said, “India is in a much better position to handle these tariffs compared to other countries. It has a massive domestic market and is not export-dependent like China. Also, Indian software exports are largely unaffected by tariffs.”

His conclusion: “No big problem for India.”

Currently, Indian shipments valued at over $30 billion, including pharmaceuticals, smartphones, semiconductors, and energy-related items, are exempt from the new tariff list. These industries remain untouched by the new duties, which are expected to take effect within the next 21 days.

In FY25, India exported $10.5 billion worth of drugs and pharmaceuticals and $14.6 billion worth of electronics—mostly smartphones—to the US. Together, these accounted for about 29% of India’s total exports to the US. Additionally, petroleum exports worth $4.09 billion remain unaffected as energy products are also on the exemption list.

India’s total exports to the United States stood at $86.51 billion in FY25.

Mobius also emphasized India's strong economic momentum. “The country is growing at 6–7% annually despite global uncertainties, which reflects the resilience of its economy,” he said. “This growth trajectory will help India continue rising and ultimately become the third-largest economy in the world.”

As of 2025, India is ranked as the fourth-largest economy, behind the US, China, and Germany—a remarkable rise from its position as the 11th-largest economy just a few years ago.

With inputs from IANS