'New Economy' firms to be India's growth engine, says HSBC

A quantum leap in digital adoption and greater high-skilled exports have emerged as the newest drivers of economic growth and jobs in India, with the nation trying to catch up with China in terms of e-commerce penetration, according to economists at HSBC Holdings Plc.

The two new economic engines stand to gain from India’s large, young labor force, as well as from global changes, HSBC analysts said in a report to clients.

“The stars seem to have aligned for India’s startups,” HSBC researchers led by Chief India Economist Pranjul Bhandari wrote. “Global liquidity, rising risk appetite, and geopolitical changes have