Can India be the next China? Jim Rogers says world’s fourth largest economy has the brains but…

Jim Rogers, co-founder of the Quantum Fund and one of the most recognisable names in global investing, has said India could become “the new China or even better” if it stays on course with pro-growth economic reforms.

Speaking to ET Now, Rogers pointed to India’s strengths, including a large, educated population and rising market sophistication. These, he said, give the country a real chance to reclaim a strong position in the global economy. “If Delhi has the right attitude,” he said, “India is going to take its place again as one of the most successful countries of the world.”

But the opportunity is not automatic. Rogers made it clear that the outcome depends heavily on policy direction. Without reforms that unlock productivity, improve ease of doing business and support investment, that potential could stall.

Markets holding up, despite foreign pullback

Although foreign institutional investors have been retreating from Indian equities in recent months, the domestic side of the market remains resilient. Retail investors and home-grown institutions have been propping up the markets, which have shown surprising buoyancy under the circumstances.

Rogers sees this as a positive sign but insists the momentum must be matched by action. “It may be the new China. It may be better. Who knows?” he said, suggesting that India’s rise is not just possible, but plausible — if managed correctly.

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Keeping an eye on India, but not yet iIn

For now, Rogers isn’t actively invested in Indian equities. His current exposure is limited to China and Uzbekistan, two markets he considers undervalued but undergoing structural improvement.“I have not found another market that’s depressed but undergoing good change,” he said. India, while not fitting that specific profile yet, is still very much on his radar.“If India goes down, I hope I’m smart enough to buy it again,” he added, hinting at a possible future entry if valuations shift.

US outlook: Dollars held with reluctance

Rogers also touched on the state of global markets, particularly the United States. He was blunt in his assessment.

“America is the largest debtor nation in history,” he said, explaining that his current holdings in US dollars stem from caution, not faith in the American economy.

His view is that when fear grips global markets again, the dollar will likely surge, not due to strength, but because there’s simply no better alternative.

“When the dollar surges again, because people are afraid of everything else, I hope I’m smart enough to sell,” he said.

That said, even Rogers isn’t sure where he’ll go next. “I don’t know another currency that can compete with the dollar,” he admitted. “If you do, send me a private email.”

Rogers’ remarks come at a time when India is trying to position itself as a dependable alternative to China in the global supply chain. With geopolitical tensions, rising costs in the West and a global pivot towards de-risking, India has found itself with a rare opening.

The question, as Rogers put it, is whether it can rise to the occasion, not just by chance, but through sustained reform and smart governance. His message is clear: the world is watching, and the door is open. But it will not stay open forever.

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