Invest in India, says DoubleLine Capital founder Jeffrey Gundlach, as he shared his thoughts with Bloomberg on how to approach investing during a time of global restructuring.
According to Gundlach, the key to navigating periods of economic transition is to focus on long-term themes. One of the most "bankable" themes, he argued, is India, calling it a play with "great success in 30 years."
"India has a similar profile today to where China was 35 years ago," Gundlach said, pointing to a combination of a vast and growing population, a strong labor force outlook, and a landscape rife with structural challenges, from legal inefficiencies to systemic corruption. "But those are things that can be fixed," he noted.
The India-China Parallel
Gundlach drew a parallel to China's remarkable economic rise, which saw the country go from 1/12th of US gross domestic product to nearly 70%–80% of it in a few decades. India, he believes, holds the same demographic promise, with an added edge from global supply chain realignments increasingly favoring the country.
Gundlach emphasised India's edge in a world reshaping its supply chains. "Manufacturing can come there. They're very technology-oriented... they have a long history of being a significant society," he added.
Gundlach's advice for those willing to look far ahead: "Just buy India, do yourself a favour and don't open the statement. Hold it for your grandchildren's funds."
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