Telecom is a very important part of expenditure in Indian economy, says Mark Mobius of Mobius Capital Partners.
The Reserve Bank of India (RBI) should have lowered the rates as the economy needs rate cuts badly, Mark Mobius of Mobius Capital Partners said in an interview with CNBC-TV18 while calling it 'unfortunate' that the RBI had not opted for a rate cut.
He belives that this is going to be a temporary situation and going forward, we can see lower rates because the economy needs it very badly and it is important to see this economy continue to grow.
Mobius also called the RBI 'too shortsighted' for not cutting rates. However, he is very positive on India.
Most of the investors see the Indian economy do better in 2020. The Indian problems are temporary and therefore, the future for next year seems to be much brighter,” he said in an interview with CNBC-TV18.
He feels that the inflation is a short-term concern while the real concern is the growth of the economy. If the economy is growing, you can solve these price problems, he feels.
It is probably a little bit too short-sighted not to lower rates because the health of the economy is number one and that is really the concern that we should be looking at and not the short-term situation with the commodity prices, said Mobius.“Telecom is a very important part of the daily expenditure of the Indian communities. So, if you look at that situation, you will realise that these exogenous kinds of changes which are beyond the control of the companies themselves. So, again, what I try to emphasise is these are temporary. The market makes an adjustment but at the end of the day, you have to help the economy by lowering rates so that these companies can survive," Mobius added.
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