India’s growth outlook holds promise: HSBC

NEW DELHI: India with a low-leverage score looks promising among emerging Asian countries, which can deliver a solid growth rate and holds the maximum potential

NEW DELHI: India with a low-leverage score looks promising among emerging Asian countries, which can deliver a solid growth rate and holds the maximum potential for a significant expansion, according to a HSBC report. Emerging Asia falls into two blocs — highly export-sensitive market (Korea, Taiwan, Hong Kong, Singapore, Malaysia, and Thailand) and more closed economies (India, Indonesia and the Philippines). Since the first camp is driven by external demand, they all carry a higher debt burden and hence, there is not much scope of a “positive growth delta here”. “The second camp looks a little more promising. Here, leverage is still low and exports don’t play as large a role in driving growth,” HSBC said.

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