New Delhi: As the world economies begin to diversify in the challenging environment as part of their China+1 strategy, India, which has seen an average GDP growth between six and six-and-a-half per cent in the last 12 years, is cushioning itself by signing several trade deals with advanced economies, HSBC’s Chief India Economist Pranjul Bhandari said on Tuesday.
Talking to IANS from Singapore, she said that India’s potential growth, at this point in time, lies in its ability to grow in a way that is sustainable.
“Once we have signed several trade deals with advanced economies, we may start seeing a lot more FDI coming into India. And, on the back of that, we manufacture more and export more. I think it’s a great opportunity for us in a world of China +1, where the world is trying to diversify, looking for new partners of trade, looking for new places where production can happen,” Bhandari contended.
On economic growth this year, the HSBC economist said this is a year of supply shock, energy shock, and it’s not just limited to just that.
“In a few months, we will be hearing about the El Nino shock as well, which is likely to set in in the next couple of months. So, if you’re going to have a double shock, energy shock and also El Nino climate shock, then it’s very hard in a year like this to grow at a very rapid pace. And that’s not just for India. I think it’s about all the countries around the world,” Bhandari told IANS, adding that all countries will have to pay the price of being in the midst of two supply shocks.
“Overall, for FY27, our India growth forecast is 6 per cent because it’s two shocks coming together. We haven’t yet started to see the growth shock in the data because it takes some time to show up. But my sense is starting September quarter, for about two to three quarters, growth could see, you know, a fair amount of moderation, because of the energy and food shock that we are in the midst of,” the economist noted.
She said India has signed several trade deals in the last couple of months, which “gives me a sign that we are focused on it and we are taking it seriously”.
(IANS)
