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Asia continues to be a key driver of the global economy, with India and ASEAN nations set for strong growth in the coming years according to a report by HSBC.
While China and Japan face population declines, India's population is expected to keep growing until 2060, according to the United Nations. This demographic advantage, combined with increasing investment and industrial expansion, positions India as a rising economic powerhouse. Indian and ASEAN economies are projected to expand at a robust pace. "In 2025, we forecast the Indian economy to grow by 6.7 per cent while ASEAN-6 is expected to deliver average GDP growth of 4.8 per cent - above the global growth of 2.6 per cent" says HSBC Global Private Banking (December 2024) report. The rise of India and ASEAN economies is driven by several structural factors. A young and growing workforce, an expanding middle-class population, strong domestic and foreign investment flows, and a booming technology sector are fuelling sustained economic momentum. "The rise of India and ASEAN is supported by structural tailwinds from young demographics, rising middle-class consumers, strong foreign and domestic private investments, and technology boom." said the report. India's economic growth is further supported by large-scale public infrastructure investments, an uptick in household investments, and a resilient manufacturing sector. The government's focus on increasing domestic production and improving business conditions has strengthened investor confidence. The services sector also remains a crucial pillar of growth, contributing significantly to job creation and economic expansion. Key sectors expected to benefit from this growth include financial services, infrastructure, consumer goods, real estate, industrials, and communication technology. The financial sector, consumer discretionary, and industrials are viewed as high-growth areas, reflecting strong demand and economic resilience. Rising income levels and a growing middle-class population in India and ASEAN are driving higher consumer spending. With moderating inflation and improved purchasing power, domestic demand is expected to remain strong. This trend bodes well for businesses catering to mass consumption, including retail, food processing, and digital services. Japan, a well-established player in technology and advanced manufacturing, continues to play a critical role in the region. At the same time, India is working towards increasing its share of manufacturing in GDP, leveraging its skilled workforce and supportive policy framework to attract global companies. (ANI)
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