Business

55% Of Indian Economy To Grow Positively Amid Signs Of Moderation: HSBC Report

The Indian economy continues to grow positively, with 55% of its indicators showing an upward trend, according to an HSBC Global Research report. This marks a decline from 65% in the previous quarter, reflecting a moderation in economic activity after rapid stock market gains and strong GDP growth.

The report highlights that despite the slowdown, several sectors are performing well, and long-term prospects remain promising.

Agriculture and Investments Lead Growth in Economy

Agriculture, contributing 15% to the GDP, shows improvement with 60% of its indicators in positive territory. Favorable weather conditions and well-filled reservoirs have boosted production, despite earlier disruptions from irregular rains and heatwaves.

Government expenditure on capital and infrastructure projects is driving investments, particularly in construction. Credit expansion to small and medium enterprises is robust, supported by digital public infrastructure, enhancing accessibility.

Consumption and Exports Show Mixed Trends

Consumption in rural and urban areas has slowed, with a dip in manufacturing output related to consumer goods. The Reserve Bank of India’s measures to curb excessive personal loan growth have also impacted consumer finance.

However, export diversification, particularly in professional services, is sustaining export growth. Tourism-related activities are thriving, fueled by pent-up demand, while the communication sector has stalled due to earlier tariff hikes.

The report notes that overall GDP growth is stabilizing at around 6.5%, down from the earlier 7%+ levels. It emphasizes that this more sustainable pace, combined with improvements in agriculture, could lead to a more equitable distribution of growth.

Also Read: Inflation To Ease, Economic Growth To Accelerate In Coming Months: Finance Ministry

Ajaypal Choudhary

Recent Posts

PM Modi Meets Bhutan PM Tobgay At BIMSTEC Summit; Highlights Strong Bilateral Ties & Regional Cooperation

PM Narendra Modi met Bhutanese PM Tshering Tobgay on the sidelines of the 6th BIMSTEC…

7 hours ago

Jamia Students Back Waqf Amendment Bill; Call It A Step Toward Empowerment

The student group 'Shaher-E-Arzoo' expressed firm support for the Waqf Amendment Bill, calling it a…

9 hours ago

India’s Exports To The US Face Limited Impact From Tariff Hike: SBI Report

The 27% tariff hike by US President Donald Trump on Indian goods will have only…

10 hours ago

Waqf Freed From Mafia Control, New Era Of Development Begins For Muslims: MRM

Following the passage of the Waqf Amendment Bill 2024 in both Houses of Parliament, celebrations…

11 hours ago

India’s Forex Reserves Surge To $665.4 Billion; Rupee Strengthens As Trade Deficit Narrows

India’s forex reserves jumped $6.6 billion to a five-month high of $665.4 billion for the…

12 hours ago

Laxmi Singh Leads Gautam Buddha Nagar Police To Historic No 1 Rank In IGRS Across All Stations

Gautam Buddha Nagar Police, led by CP Laxmi Singh, achieved a historic feat with all…

12 hours ago