Medium-term growth prospect of the Indian economy is growing, and with the GST Bill likely to be passed later this year, it will only improve further, says an HSBC report.
According to financial services major, out of the four Bills, three have made it to Parliament (the Aadhar Bill, the Bankruptcy Code, and the Bill that formalises the
Monetary Policy Committee), which has come as a shot in the arm for the economy.
"With a possible likelihood that the Goods and Services Tax Bill will get passed later in the year, India's medium term outlook would only improve further," HSBC said in a research note.
On the state elections results, the report noted that though these results show that BJP's popularity is "not waning", it still leaves a "tricky Upper House math".
BJP lacks majority in the upper House of Parliament, and this has put brakes on passage of some Bills.
"Its victory in Assam is not expected to increase its seat share in the upper House during the current term of the government as the next set of Assam's seats come up for renewal only after the government's current term ends in May 2019," HSBC explained.