New Delhi, 9 June (IANS). India’s base remains stronger amid tariff uncertainty globally and development will be seen in the coming times. This information was given in the report released on Monday by HSBC Mutual Fund.
The report said that due to tariff war, the demand for safe assets remains at a high level. Due to this, capital outflow is being seen, due to which there is pressure on emerging economies like India’s currency.
The Outlook report said, “India’s contact with the US, the country’s business diplomacy and policy approach has brought India to the leaderboard amid tariff concerns, which have influenced the approach to trade and development globally.”
The reduction in inflation in India has given the RBI MPC an opportunity to focus on promoting development through policy relaxation. Moving towards the neutral trend of MPC means that the scope of future cuts can be limited and also that it will depend on the figures.
“We also expect an increase in private capital expenditure in renewable energy,” HSBC reports said.
According to the report, RBI will continue to focus on maintaining liquidity in the system in the surplus for a quick impact of monetary policy at rates.
The report said, “We believe the development cycle in India has reached its lowest level. Interest rate and liquidity cycle, fall in crude oil prices and normal monsoon are all helpful in accelerating development in future.”
The report stated that the real estate remains another strong factor in the moderate period, which has suffered the impact of high interest rates. The trend of demand in top metro cities remains strong and inventory levels have declined.
-IANS
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