It highlighted key sectors like pharmaceuticals, transport equipment and textiles as the propeller of India’s growth story.
The report was especially optimistic about India’s textile industry which is poised to regain its place as the global garment hub. “Despite struggling with a number of structural impediments to growth, prospects for medium-term growth in trade remain strong,” the HSBC report said.
The report comes at a time when India’s near-term growth prospects remain uninspiring. The economy is expected to grow by 5.3 percent in 2014 and pick up speed to 6.3 percent in 2015.
“The economic potential for India remains strong, with the growing population and rapidly expanding middle class — it presents opportunities for business. India is forecast to emerge as the world’s largest middle-class market, surpassingboth China and US,” said Sandeep Uppal, MD and head, commercial banking, HSBC India.
India’s pharmaceuticals exports are likely to emerge as one of the top ten contributors to total export growth. It added that India’s domestic pharmaceuticals sector is relatively advanced and in a position to compete globally.
The government is expected to announce its new five-year Foreign Trade Policy within the next fortnight. The announcement is expected to offer initiatives to enhance export.
The report also added that the UAE is likely to remain India’s top export destination by 2030, while China is forecast to emerge as the second largest export market, displacing the US.
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