India's Stability and Growth a "Natural Choice" for US Investors: RBI Governor With a resilient banking system characterized by strong profitability, declining non-performing assets, and adequate capital buffers, Malhotra reassured investors of the sector's readiness to meet growing demands.
You're reading BIZ Experiences India, an international franchise of BIZ Experiences Media.
Reserve Bank of India Governor Sanjay Malhotra has called on American businesses to deepen their engagement with India, highlighting the country's resilience and growth at a time when global economic turbulence is intensifying. Speaking at the US-India Economic Forum, organized jointly by the Confederation of Indian Industry (CII) and the US-India Strategic Partnership Forum (USISPF) on Friday, Malhotra underscored India's continuing rise as the world's fastest-growing major economy.
"It (India) was and continues to be the fastest-growing major economy in the world. This is a significant step up from the average growth rate of 6.6 per cent in the preceding decade (2010 to 2019). 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," Malhotra stated.
The Governor emphasized that India's robust macroeconomic fundamentals, political stability, and consistent, transparent policy frameworks make it an attractive destination for sustained investments. "India continues to be an economy supported by stability — monetary, financial, and political; policy consistency and certainty; congenial business environment; and strong macroeconomic fundamentals," he noted.
Malhotra also pointed to India's resilience in the face of global uncertainties. Over the past four years, the country has averaged an 8.2 per cent growth rate annually; a leap from the 6.6 per cent averaged between 2010 and 2019. Even though the 6.5 per cent forecast for this year is below India's aspirations, it remains the highest among major global economies. "This," he said, "is despite the tremendous increase in uncertainty and volatility in global financial markets."
He stressed India's transformation on the global stage, having climbed from the tenth-largest economy a decade ago to the fifth today. "Even nominally, we are poised to become the third largest economy shortly," Malhotra said, adding that India aims to achieve developed nation status by 2047, marking its centenary of independence.
The strength of India's financial sector also featured prominently in his remarks. With a resilient banking system characterized by strong profitability, declining non-performing assets, and adequate capital buffers, Malhotra reassured investors of the sector's readiness to meet growing demands. "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," he said.
Malhotra closed by pointing to the government's proactive promotion of sunrise industries such as space, semiconductors, renewable energy, and electric vehicles, urging American businesses to be partners in India's growth story. "Together, we have the chance to shape the future — not only for India but for a better world," he said. "I invite you to be a part of this journey, to collaborate, innovate, and invest in India."
