India's growth resilient despite global challenges: HSBC Mutual Fund
- IBEF
- January 14, 2026
India’s economy continues to perform strongly despite ongoing global challenges, supported by rising private sector investment and robust consumer spending, according to HSBC Mutual Fund. The fund observed that sustained capital investment and healthy consumption trends have provided a strong buffer against external headwinds such as the slowdown in global trade, elevated interest rates in major economies, and persistent geopolitical uncertainties. Domestic economic activity has maintained positive momentum across sectors, reflecting steady household confidence, improving income visibility, and the cumulative impact of supportive structural reforms. These factors, HSBC Mutual Fund noted, have helped underpin India’s long-term growth ambitions and reinforced macroeconomic stability even as global conditions remain volatile.
According to HSBC Mutual Fund, India’s investment appetite has strengthened across a broad range of sectors, with manufacturing and infrastructure continuing to attract significant capital deployment from both public and private players. This investment momentum, combined with the sustained expansion of the services sector and improving wage structures in the formal economy, has helped establish a stable and resilient economic foundation. The fund also highlighted that India’s banking sector remains well capitalised, with improved asset quality supporting credit growth, while inflation has moderated in recent months, providing policymakers with greater room for calibrated monetary support. Despite external pressures emanating from global markets, HSBC Mutual Fund expects resilience in domestic demand and investment to sustain India’s growth trajectory as the current fiscal year draws to a close. The commentary further underscored the importance of continued structural reforms, wider access to digital technology across education and professional domains, and a sharper focus on enhancing industrial competitiveness as key pillars for rebuilding and maintaining India’s long-term growth momentum.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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