RBI Governor Urges US Businesses To Invest In India, Says Indian Economy Remains The Fastest Growing
Despite heightened volatility and uncertainty in global financial markets, Malhotra stated, India is projected to grow by 6.5 per cent in the current financial year.
Reserve Bank of India (RBI) Governor Sanjay Malhotra urged American businesses to deepen their engagement with India, highlighting the nation's consistent policy framework and rapid economic growth.
Speaking at the US-India Economic Forum hosted by the Confederation of Indian Industry (CII) and US-India Strategic Partnership Forum (USISPF) in Washington on Friday, Malhotra emphasised that India remains the fastest-growing major economy.
Despite heightened volatility and uncertainty in global financial markets, Malhotra stated, India is projected to grow by 6.5 per cent in the current financial year.
"At a time when many advanced economies are facing economic headwinds and a deteriorating economic outlook, India continues to offer strong growth and stability making it a natural choice for investors seeking long term value and opportunity," he said.
He pointed to India's monetary, financial, and political stability, along with policy certainty and a congenial business environment, as key strengths supporting the economy.
Malhotra also outlined India's transparent, rule-based, and forward-looking policy environment, describing it as highly conducive for long-term, productive investment. "As the world's fastest-growing major economy, India is not just a destination for investment, it is a partner in prosperity," he remarked, inviting US companies to collaborate, innovate, and invest in India for shared growth.
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Strong Macroeconomic Fundamentals and Expanding Financial Sector
Reflecting on India's economic journey, Malhotra noted that the nation registered an average growth rate of 8.2 per cent between 2021-22 and 2024-25. This marks a notable improvement over the 6.6 per cent average growth recorded from 2010 to 2019.
He reiterated that while the expected 6.5 per cent growth this year falls short of India’s long-term aspirations, it still stands as the highest among major economies.
The governor highlighted India’s remarkable progress on the global stage, stating, "Over the last ten years, India has leapfrogged from the tenth largest economy to the fifth. In terms of purchasing power parity, India is already third. Even nominally, we are poised to become the third largest economy shortly." He reaffirmed India's ambition to achieve "Viksit Bharat," or developed nation status, by 2047, as the country celebrates 100 years of independence.
On the financial sector, Malhotra emphasised the resilience and strength of India’s banking system. Scheduled Commercial Banks (SCBs) have seen improvements in profitability, reductions in non-performing assets, and strengthened capital and liquidity buffers. The Non-Banking Financial Companies (NBFCs) sector is also in robust health. Although bank credit growth has moderated slightly in recent months, it remains in double digits at around 12 per cent, compared to the 10.5 per cent average over the last decade.
"We are committed to further enhancing the capacity, responsiveness, and resilience of the banking and non-banking financial sectors with emphasis on balancing regulation with efficiency and stability," Malhotra said, adding that India’s relatively low private debt-to-GDP ratio leaves significant room for growth and investment.
Additionally, Malhotra pointed to government initiatives that open up investment avenues in emerging sectors like space, semiconductors, renewable energy, and electric vehicles. He noted that India is strengthening its role in global supply chains and becoming a hub for SaaS innovation, particularly in generative AI technologies.
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