India is faltering as an investment destination because of significant policy mistakes and stock prices there will slide if the nation’s credit rating is cut, according to Mark Mobius, one of the world’s best-known emerging market investors.
“The Indian government has been making many many big policy mistakes. The most important of all is the idea of having retroactive taxation,” Mobius, executive chairman of Templeton Emerging Markets Group, told Reuters in a phone interview from the Bahamas.
Foreign investors have raised concerns on two Indian provisions seeking to tax indirect investments and combat tax evasion.
Mobius’s team manages $50 billion worth of emerging markets equities for Franklin Templeton Investments, an arm of U.S. money manager Franklin Resources Inc.
