HSBC's Bhandari sees exports driving India growth, more hikes
In short
HSBC chief India economist Pranjul Bhandari said exports are becoming India’s main growth driver, helped by trade deals and a weaker rupee. She said high crude prices and inflation may keep CPI above the RBI’s comfort range, and she expects two more rate hikes this year.
This matters for India’s economy, exporters and borrowers. The reporting does not confirm any new RBI action, only Bhandari’s view.
What the reporting says
HSBC chief India economist Pranjul Bhandari said exports are emerging as India’s biggest growth driver, helped by new trade agreements and a weaker rupee. She also said higher crude prices and inflation could keep CPI above the RBI’s tolerance band, which she expects could lead to two more rate hikes this year. The reporting does not say the RBI has made any new decision, only that Bhandari is forecasting it.
Why it matters
HSBC chief India economist Pranjul Bhandari said exports are becoming the main support for India’s growth, citing trade agreements and a weaker rupee. She warned that higher crude prices and inflation could keep CPI above the RBI’s tolerance band and said she expects two more rate hikes this year. The report does not indicate any RBI decision; it reflects a market economist’s outlook for growth, prices and policy.