GLS 2025 | India offers growth amid global uncertainty, says HSBC India CEO

HSBC India Chief Executive Officer Hitendra Dave, speaking at the CNBC-TV18 Global Leadership Summit 2025 in Mumbai on Friday (November 7), said global economic uncertainty has been the defining theme for central banks, including the European Central Bank, Bank of England, Federal Reserve, and Reserve Bank of India.

Despite widespread concerns earlier this year of deep recessions and runaway inflation, he noted that these scenarios have not materialised. In contrast, India stands out with political stability over the past 10–11 years, low and stable inflation for the past seven to eight years, financial sector and market stability, and strong growth. Dave described India as a “shining beacon” with an opportunity for the country to seize growth and stability.

India FDI

On foreign direct investment, Dave observed that boards are naturally cautious in the current 2025 environment due to supply chain uncertainties, changing tariffs, and cost fluctuations. However, he explained that FDI is still flowing into India in unconventional forms, such as salaries and investments in real estate, while gross FDI numbers remain steady, and net FDI has reduced slightly due to buoyant stock markets.

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He stressed that India continues to attract global attention, with many foreign companies exploring listing opportunities or investments in Indian operations to tap the domestic market. Dave noted that mid-sized and smaller Indian entrepreneurs are increasingly acquiring overseas assets to leverage technology, improve efficiencies, and sell globally, while large Indian companies remain focused on domestic production to serve the local market.

Discussing corporate interest in India, Dave pointed out that global companies are evaluating how best to expand Indian operations, including listing subsidiaries in India.

He cited examples such as Hyundai and LG India, where local listings offered higher valuations than their global parent companies, reflecting India’s market potential.

Dave described this trend as a welcome development, providing global technology, governance, and market alternatives to conventional Indian firms.

He pointed out that ongoing acquisitions by Indian entrepreneurs abroad, particularly in Europe and the UK, as part of a broader strategy to combine efficient manufacturing capabilities with access to new markets, while large Indian companies continue to prioritise domestic production to serve Indian consumers.

HSBC India operations

Regarding HSBC India’s operations, Dave outlined the bank’s full-service offerings, including salary accounts, mortgages, credit cards, mergers and acquisitions, equity listings, debt, capital markets, trade, and payments. He confirmed HSBC India has been granted Reserve Bank of India approval to open 20 new branches over the next period, adding to its current presence in 14 cities. Once operational, HSBC India will have branches in 34 cities.

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