India and ASEAN Poised for Strong Economic Growth in Coming Years: HSBC Report

New Delhi: Asia remains a key driver of the global economy, with India and ASEAN economies expected to witness robust growth in the coming years, according to a recent HSBC Global Private Banking report.

While China and Japan are experiencing population declines, India’s population is projected to grow until 2060, as per the United Nations. This demographic advantage, combined with rising investments and industrial expansion, strengthens India’s position as a rising economic powerhouse.

Projected Growth in 2025

The HSBC report forecasts strong economic performance for India and ASEAN nations:

• India’s GDP is expected to grow by 6.7% in 2025.
• The ASEAN-6 economies (Indonesia, Malaysia, the Philippines, Singapore, Thailand, and Vietnam) are projected to expand at an average rate of 4.8%, outpacing the global growth estimate of 2.6%.

Key Drivers of Growth

Several structural factors are fueling India and ASEAN’s economic rise, including:
✔ A growing young workforce supporting long-term economic expansion.
✔ Rising middle-class consumption, driving demand across industries.
✔ Strong domestic and foreign investments, boosting key sectors.
✔ Technological advancements, accelerating innovation and productivity.

The report highlights, “India and ASEAN’s growth is backed by demographic advantages, increasing consumer spending, private sector investments, and a flourishing technology industry.”

India’s Expanding Economic Sectors

India’s growth trajectory is further supported by:

• Massive public infrastructure investments, enhancing connectivity and industrial development.
• Increased household investments, boosting domestic demand.
• A resilient manufacturing sector, attracting global businesses.
• Government initiatives improving the ease of doing business, strengthening investor confidence.

The services sector, a major pillar of India’s economy, continues to drive job creation and economic expansion.

High-Growth Industries in Focus

According to the HSBC report, key industries set to benefit from this economic momentum include:

• Financial services and consumer goods, driven by growing disposable incomes.
• Infrastructure and real estate, fueled by rapid urbanization.
• Industrials and technology, benefiting from policy support and digital adoption.

Rising Consumer Demand in India and ASEAN

With moderating inflation and increasing purchasing power, consumer spending is expected to rise. Sectors such as retail, food processing, and digital services are likely to experience sustained demand growth.

Regional Influence and Global Investments

While Japan continues to lead in technology and advanced manufacturing, India is expanding its manufacturing base, leveraging its skilled workforce and business-friendly policies to attract global investments.

With strong economic fundamentals and policy support, India and ASEAN are set to play a crucial role in shaping the future of the global economy.

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