HSBC's Pranjul Bhandari sees exports driving India's growth, expects two more RBI rate hikes
CNBC-TV18 1 hr ago·30 Sept 2026, 7:03 am
HSBC's Chief India Economist, Pranjul Bhandari, has highlighted a significant shift in India's economic outlook. She believes exports are now emerging as the primary engine for growth, a trend likely to be supported by new trade agreements and a depreciating rupee. This resilience is seen as a key factor for the country's economic stability amidst global challenges.
However, this positive momentum faces headwinds. Bhandari warns that rising crude oil prices and persistent inflation could keep consumer price inflation above the Reserve Bank of India's (RBI) preferred tolerance band. This scenario increases the likelihood of the central bank maintaining a tight monetary policy stance.
Investors should watch for the RBI's upcoming policy decisions. The expectation of two additional interest rate hikes this year could impact borrowing costs and market liquidity. While export growth offers a buffer, the interplay between global energy prices and domestic inflation will be critical in determining the market's next moves.
Key takeaways
- Category: Economy.
- Flagged as a high-impact, market-moving story.
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