Moody’s decision to downgrade India’s ratings outlook was “erroneous,” veteran emerging markets investor Mark Mobius said.

Mobius, who has long been bullish on India, said he doesn’t agree with the ratings agency’s assessment that the country’s growth will be subdued. Moody’s said the change in its outlook for India’s ratings from “stable” to “negative” partly reflected lower government and policy effectiveness in addressing weaknesses in the economy.

“I think Moody’s call was erroneous, I don’t think it was called for because I see tremendous growth coming in India going forward ... I believe that a lot of the reforms are going to really begin to kick in and have a big impact on the economy going forward,” he told CNBC.

India is undergoing a significant slowdown. Its economic growth hit a six-year low in the April-to-June period, during which the economy grew 5% from a year ago. An ongoing crisis in the finance sector has hamstrung lending and impacted investments, while recent policy reforms have left small-and-medium businesses reeling.India’s economy is also struggling to create enough jobs for its workforce.