"On a micro basis, you have to worry because many of the large companies are heavily in debt and they have to be bailed out by the banks, which in turn have to be bailed out by the government," he said.
Mark Mobius of Mobius Capital Partners is worried about India.
In an interview with CNBC, Mobius said: "I think on a micro basis, you have to worry because many of the large companies are heavily in debt and they have to be bailed out by the banks, which in turn have to be bailed out by the government, which is happening now," said Mobius.
According to him, the government debt is not going to be a big concern going forward because it is going to be drawing in much more tax revenue as a result of the reforms in the tax. "They are more efficiently raising taxes. That is a development that should be watched carefully," he said.
In terms of India-Pakistan relationships, he said, "I don't think you are going to see much more conflict in the next 10 years because India has to catch up on the technology level – I am talking about hardware. Software - India is ahead. They are going to start catching up on the hardware that is when you are going to see some competition."
Source: CNBC-TV18
