India a bright investment spot, to remain fastest-growing major economy: HSBC

New Delhi, June 17: India remains a bright spot for investment globally in the third quarter this year (Q3 2025), backed by resilient domestic consumption, favourable trade dynamics and supportive monetary policy, an HSBC Global Private Banking report said on Tuesday, adding that India’s GDP is projected to grow at 6.2 per cent in 2025, making it the fastest-growing major economy.

HSBC said in its latest investment outlook that it retains a mild overweight on Indian equities and local currency bonds. Within equities, it prefers large-cap stocks and favours more domestically oriented sectors and favour the financials, healthcare and industrial sectors.

“India’s economic resilience, underpinned by strong domestic consumption, favourable trade dynamics, and accommodative monetary policy, sets the stage for a promising second half of 2025,” the report noted.

The bank set out how investors should continue to expect the unexpected, even after the roller-coaster ride in the markets so far this year. With the high volume of US policy announcements, investors are likely to continue seeing two-way market volatility.

“While we acknowledge the elevated global uncertainty, we expect India’s GDP to grow at 6.2 per cent in 2025, making it the fastest growing major economy,” said James Cheo, Chief Investment Officer for South East Asia and India at HSBC Global Private Banking and Premier Wealth.

Resilient domestic investor-base, and recent foreign investor flows point towards supportive technical, he added.

The four priorities going into Q3 2025 for investors include diversified equity exposure, opportunities in AI adoption, mitigating currency risks, and tapping into Asia’s domestic growth.

“Investors should develop portfolios that are resilient to political and market surprises to navigate the uncertain economic climate,” the report added.

“While we expect to see lower US growth this year, the economy should not slide into recession or stagflation. Earnings growth expectations have already been reduced, and valuations are reasonable at around historical averages,” said Willem Sels, Global Chief Investment Officer at HSBC Global Private Banking and Premier Wealth.

Reader Comments

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Rahul K.

This is great news for our economy! 🇮🇳 But I hope this growth translates to better jobs and opportunities for middle-class Indians too. Sometimes these reports feel disconnected from ground realities. Still, proud to see India shining on global stage!

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Priya M.

As someone working in healthcare sector, I'm glad to see it's among preferred sectors. But government needs to ensure this growth benefits all sections - rural healthcare still needs massive investment. Growth numbers alone don't tell full story.

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Amit S.

Foreign investors coming back is good sign after last year's volatility. But we must be careful about over-dependence on FII flows - domestic institutions and retail investors need to play bigger role for stable growth. #AatmanirbharBharat

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Sunita R.

Industrial sector getting attention is positive, but what about manufacturing? China+1 strategy is working but we need better infrastructure and less red tape to truly compete. Hope next budget addresses these issues.

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Vikram J.

While the numbers look good, common man is still struggling with inflation. Petrol prices, grocery bills pinching hard. Economy growing is one thing, but when will we feel it in our wallets? 🤔

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Neha P.

Exciting times for Indian markets! Just started SIP in large-cap funds last year and already seeing good returns. Young investors like me are finally understanding the power of equity markets. More financial literacy programs needed though!

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