India Emerges as Key Player in APAC, Driven by Growing Client Activity and Capital Flows, Says BofA Asia Pacific President

Bank of America's President of Asia Pacific Sees India as a Key Contributor to APAC Growth

Jin Su, President of Asia Pacific at Bank of America, has expressed confidence in India's economic growth despite the evolving macro uncertainties in the region. Speaking at the 2026 India Conference by BofA Global Research, Su highlighted India's resilient domestic demand, continued infrastructure investment, and gradual recovery in private-sector capex as key drivers of its growth.

India is one of the most strategically important markets for Bank of America in the Asia Pacific region, underpinned by a structural, long-term growth trajectory and increasing global integration. The bank is actively deploying its global capabilities to support clients as they participate in India's next phase of expansion, both Indian companies scaling internationally and global firms deepening their presence in the country.

Key Drivers of India's Growth

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The reform momentum of the past decade has strengthened India's economic foundation, with improved policy clarity, regulatory framework, and a steady rise in investor engagement. This is reflected in the depth and quality of client activity, as well as sustained interest from global capital. Bank of America expects India to remain one of the fastest-growing major economies globally and a key contributor to APAC growth in the current year.

While external risks such as energy price volatility and geopolitical uncertainty persist, the outlook is supported by resilient domestic demand, continued infrastructure investment, and a gradual recovery in private-sector capex. India's growth profile remains both durable and broad-based, reinforcing its importance within the regional landscape.

Cyclical Risks and Structural Areas of Concern

Bank of America views the external energy environment as a key near-term variable that warrants monitoring. A sustained increase in oil prices, particularly in the context of geopolitical uncertainty, could transmit into higher inflation, exert pressure on the current account, and tighten financial conditions. However, the bank sees this as a cyclical risk rather than a structural one.

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Two structural areas warrant close attention, including the evolution of global technology spending in the context of AI and automation, which could reshape demand dynamics for India's IT services sector, and the pace and consistency of execution in manufacturing-led growth. While policy initiatives such as Make in India and Production Linked Initiative have created a strong framework, outcomes have varied across sectors and regions, and sustained job creation at scale will be critical to supporting consumption and maintaining long-term growth momentum.

India's Share in APAC Revenues

Bank of America expects India's share within APAC to increase over the next three to five years. The data points back this assertion, with the World Bank expecting India to grow in the mid-6% range, making it one of the world's fastest-growing major economies. India is expected to become the 3rd largest economy by the end of this decade, with its share of global GDP steadily rising.

Focus on Scaling the Franchise

With new leadership taking the reins in India, Bank of America's focus will be to scale the franchise in tune with India's increasing global relevance. The bank will deepen client engagement across corporates, financial institutions, and investors, supporting Indian companies as they expand globally, and helping global clients participate more meaningfully in India.

Ease of Doing Business

Bank of America views the government and regulators as having made meaningful progress in strengthening India's business and investment climate. India attracted a record $94.5 billion in FDI (Gross) in FY2025–26, up 17% year on year. Most sectors are now open to 100% FDI under the automatic route, and the broader reform effort has clearly improved confidence in the market.

Capex Landscape

Green capex in APAC remains strong and has broadened, with a focus on transmission, storage, grid modernisation, and other enabling infrastructure as well as on renewable generation. India fits into this broader regional trend, with green capex expected to grow rapidly to 500GW by 2030.

M&A Market

India remains one of the more structurally attractive M&A markets in the region, and Bank of America's investment banking team in India expects M&A activity to continue to be robust this year. Indian corporate balance sheets have witnessed strong deleveraging over the past decade, and most companies have ready access to new equity capital through QIPs or Rights Issues.