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India's growth cycle bottoming out, normal monsoon support growth ahead: HSBC

  • HSBC's report suggests that India's growth cycle may be bottoming out with various supportive factors in place such as declining interest rates, liquidity cycle, lower crude oil prices, and expectations of a normal monsoon.
  • The report anticipates a boost in growth driven by sustained government spending on infrastructure, manufacturing, increased private investments, and a recovering real estate sector.
  • Furthermore, the report highlights potential for faster economic growth in India due to higher private sector investments in renewable energy, localization of technology components, and increased integration into global supply chains.
  • Despite global uncertainties, including trade-related concerns and reciprocal tariffs, the report remains optimistic about India's growth prospects, citing a GDP growth of 7.4% in Q4FY25 and potential policy easing supported by a weakening US dollar and lower crude oil prices.

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