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.