0646 GMT - India needs to introduce deep reforms to spur both credit and economic growth, HSBC economists write in a note. While the country's central bank has cut its repo rate and infused domestic liquidity to boost weak credit growth, the RBI can't entirely solve the credit slowdown process that stems from slow gross domestic product gains and the pivot to the informal sector from the formal sector. The HSBC economists say that if India can become a meaningful producer and exporter of goods amid global supply-chain changes, that could encourage investment, raise credit demand and improve GDP growth. Some possible reforms include lowering tariff rates on intermediary inputs, more trade deals, increased reception to foreign direct investment inflows and reforms to improve ease of doing business across states. (megan.cheah@wsj.com)

(END) Dow Jones Newswires

July 18, 2025 02:46 ET (06:46 GMT)

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