As discussions about the global trade order intensify, prominent global investor Mark Mobius has highlighted that a free bilateral trade agreement (BTA) with the United States would greatly benefit India. Mobius emphasized that Prime Minister Narendra Modi and US President Donald Trump share a positive relationship, which could play a significant role in advancing trade between the two nations.

Mobius, who heads the Mobius EM Opportunities Fund for emerging markets (EMs), told IANS that while the global economy might face challenges, he anticipates that Trump will soon begin signing trade agreements with various countries, which would help stabilize markets and reduce the chances of a major economic slowdown.

“India has several non-tariff barriers, like quality control inspections,” Mobius pointed out. “It would be best for India to eliminate these barriers and secure a free trade agreement with the US.”

Both New Delhi and Washington are currently working towards signing the first phase of a Bilateral Trade Agreement (BTA), which aims to reduce tariffs by the fall of 2025. The terms for this agreement have already been finalized, and Mobius believes that if completed within the expected timeline, it will prove beneficial for both nations.

While a fully free trade environment would be ideal, Mobius noted that many countries, especially China, are reluctant to follow World Trade Organization (WTO) rules and adhere to the principle of reciprocity. The US is seeking greater reciprocity from other countries in order to address trade imbalances and promote manufacturing.

Currently, China faces up to 245% tariffs on imports to the US due to retaliatory tariffs, particularly following Beijing’s decision to halt Boeing jet purchases. Mobius highlighted that President Trump is open to striking a trade deal with China, but emphasized that Beijing should make the first move.