India's Economic Revival: Signs of Growth Amid Global Challenges

India's economic resurgence is underway, buoyed by a range of positive domestic factors even as global trade uncertainties linger, according to HSBC Mutual Fund's latest report. It indicates that India's growth cycle might be stabilizing, backed by decreasing crude oil prices, favorable monsoon forecasts, and a supportive monetary environment.

The report suggests that interest rate adjustments, coupled with a conducive liquidity atmosphere, are poised to foster economic acceleration in upcoming quarters. Furthermore, India's GDP saw a rise to 6.2% year-on-year by the third quarter of FY25, a testament to the nation's economic resilience. The government's recent tax cuts aim to stimulate private consumption amidst previous signs of stagnation.

While global trade issues pose short-term impediments to private capital investment, India's medium-term investment outlook remains optimistic, driven by substantial government infrastructure projects and a rejuvenating real estate sector. Renewable energy, technology manufacturing, and enhanced roles in global supply chains are key sectors attracting investment. Economists predict rate cuts from the RBI in response to easing U.S. dollar pressures and oil prices, further bolstering economic sentiment.

(With inputs from agencies.)