<ul data-eligibleForWebStory="true"><li>HSBC Global Research forecasts a $30-40 billion annual boost in discretionary consumption in India over the next 18-24 months.</li><li>Factors driving this surge include tax cuts in FY26, the implementation of the 8th Pay Commission in FY27, lower interest rates, and inflation.</li><li>Reduced personal tax rates from FY26 are expected to save taxpayers $12 billion, while the 8th Pay Commission could result in an additional income of $18-26 billion.</li><li>Lower interest rates may save $3-4 billion on mortgage payments, with potential additional savings from lower inflation.</li><li>HSBC is optimistic about medium-term prospects despite a lack of significant triggers in the near term (6-9 months).</li><li>The fourth quarter earnings performance in India was better than feared, with 61% of the top 500 companies beating EPS estimates.</li></ul>

HSBC Forecasts $30-40 Billion Annual Boost In Non-Essential Purchases, Discretionary Consumption To Increase

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