Reserve Bank of India Governor Sanjay Malhotra has extended an open invitation to the US business community, encouraging them to invest in India.
Speaking at the US-India Economic Forum organized by the Confederation of Indian Industry and the US-India Strategic Partnership Forum, Malhotra highlighted India’s consistent economic growth and stable policy environment as strong reasons for global investors to look towards the country.
Malhotra emphasized that despite growing uncertainty and volatility in the global financial markets, India is expected to achieve a growth rate of 6.5 percent in the current financial year.
At a time when many advanced economies are struggling with economic challenges, he said India remains a beacon of stability and opportunity, offering long-term value for investors.
The governor underlined India's strengths, pointing to its stable monetary, financial, and political environment, along with policy consistency and a business-friendly atmosphere.
He described India as an economy backed by strong macroeconomic fundamentals, providing a transparent, rule-based, and forward-looking policy ecosystem, which is crucial for attracting productive and long-term investments.
Malhotra called India more than just an investment destination. He said the country is a partner in prosperity and invited businesses to join in shaping a better future together through collaboration and innovation.
Reflecting on the Indian economy’s performance, Malhotra shared that between 2021 and 2025, India has maintained an impressive average annual growth rate of 8.2 percent.
This marks a significant improvement from the 6.6 percent average recorded in the decade from 2010 to 2019. Even though the 6.5 percent growth rate for the current financial year may fall short of India’s broader aspirations, it still positions India as the fastest-growing major economy globally.
He proudly stated that over the last ten years, India has advanced from being the tenth-largest economy to the fifth-largest.
In terms of purchasing power parity, India has already secured the third position globally. He added that in nominal terms as well, India is expected to soon become the third-largest economy.
Malhotra reiterated India's ambition of becoming a developed nation, or "Viksit Bharat," by the year 2047, marking a century of India's independence.
Focusing on the financial sector, Malhotra assured that India's banking system remains strong and resilient, capable of meeting the expanding needs of the economy.
Scheduled commercial banks have demonstrated healthy profitability, low levels of non-performing assets, and have maintained sufficient capital and liquidity buffers.
The non-banking financial companies sector has also shown robust performance, contributing effectively to the economy's credit needs.
He noted that although there has been a slight moderation recently, bank credit growth remains in double digits, hovering around 12 percent. This is higher than the average growth rate of about 10.5 percent over the last decade.
Malhotra expressed confidence that the financial sector would continue to balance regulation with efficiency and stability, ensuring it remains responsive to the investment needs of society and industry.
Highlighting emerging opportunities, Malhotra spoke about proactive government policies aimed at attracting investments in new and growing sectors.
He mentioned areas such as space technology, semiconductor manufacturing, renewable energy, and electric vehicles as key sectors where India is creating promising investment avenues.
He also pointed to India's efforts to strengthen its position in global supply chains by encouraging local sourcing and manufacturing initiatives.
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