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.
“I think if you visit the city of Hyderabad, that is FDI. The whole city is FDI there for you. It’s just not in the conventional sense of factories and goods and on the trains. The whole story, the whole real estate there, the hundreds of 1000s, if not millions, of people who are working there, they are receiving FDI every month, which is their salary.
It doesn’t come as one bulky $500 million, but it comes as 200,000 per person every month into whatever number of millions. So there are sectors where FDI is coming in, and at the numbers level. And I’m sure you’re aware, but for the benefit of the audience here, our gross FDI number actually hasn’t come down as much, yes, but what has reduced is the net, and that is simply because of the very buoyant stock markets we had,” he added.
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.
“I’m sure the audience knows, but you take the example of Ltd, right? I mean, or Hyundai. I think when we were part of the Hyundai deal, Hyundai globally was trading at a P/E multiple of five. By the time we listed the Indian company that PE multiple had gone from five to nine, and the Indian company was listed at a multiple of 23. Yes, and this is after they had taken out substantial dividends in the preceding few months. LG India is today valued at more than LG global, yes, more than the parent,” Dave said.
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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