India's Moment of Truth: Can Reforms Overcome Global Headwinds?

HSBC Research points out that world trade and tariff volatilities have the potential to reduce India's GDP growth in the short term but potentially stimulate deeper reforms over the medium term. US tariff threats have already triggered reforms such as reducing import tariffs and expedited trade deals. The achievement of India in services exports from low-tech to high-tech services is an example of growth in the future. The trade deficit of the country narrowed considerably during February, driven by a strong services trade surplus. But to ensure sustained growth, reforms should be holistic.

 

Source: The Hans India, HSBC Research