India in a better position to deal with crude oil price rise: Michael Dommermuth, head Asia, Manulife

India in a better position to deal with crude oil price rise: Michael Dommermuth, head Asia, Manulife

Michael Dommermuth, head of wealth and asset management-Asia, Manulife Investment Management



Rate hike by US Fed is not a good sign for emerging markets (EMs). On the other hand, the ongoing Russia-Ukraine war has pushed up prices of crude oil, which doesn’t bode well for Indian economy, due to its dependence on oil imports.

Despite the global headwinds, Michael Dommermuth, head of asset and wealth management-Asia at Manulife Investment Management, says the global asset manager is overweight on India within the EM pack. He says there are several factors that put India in a much better position now to deal with rising oil prices. Dommermuth says Manulife, which globally manages $856 billion of assets and is a 49% partner in Mahindra Manulife Mutual Fund, will keep its focus on active fund management and not shift to passive funds, as there is huge scope to deliver outperformance in emerging markets like India. Edited excerpts:

Why do you think India is better-positioned to deal with rise in oil prices?

India has undertaken a number of reforms, such as formalisation of its economy, incentivising domestic manufacturing, digitalisation, import substitution, as well as increasing exports. This is creating stability in India’s current account, it