Amid global economic uncertainties, India offers strong growth prospects and stability for investors seeking long-term value, said Reserve Bank of India (RBI) Governor Sanjay Malhotra.
Speaking at the US-India Economic Forum, organized by the Confederation of Indian Industry (CII) and the US-India Strategic Partnership Forum (USISPF) in Washington, D.C., Malhotra highlighted India’s monetary, financial, and political stability, policy consistency, favorable business environment, and robust macroeconomic fundamentals.
“At a time when many advanced economies face headwinds and a weakening economic outlook, India remains a natural choice for investors,” he stated.
Malhotra emphasized that India’s strong domestic demand, contributing about 90% to GDP, and relatively lower dependence on exports, shields its economy from external shocks. In contrast, merchandise exports account for only about 12% of India’s GDP, much lower compared to other economies.
He stressed that India’s transparent, rule-based, and forward-looking policy environment makes it an attractive destination for long-term and productive investments. “As the world’s fastest-growing major economy, India is not just a destination for investment — it is a partner in prosperity,” he added.
Malhotra also noted that India’s financial markets offer smooth entry and exit for foreign investors, showcasing the maturity and resilience of its economy.
He highlighted that India’s banking sector, supported by strong balance sheets, lower non-performing assets, robust profitability, and adequate capital buffers, is well-positioned to meet the investment needs of society and industry.
Despite global financial market volatility, India’s economy demonstrated remarkable resilience with an average annual growth rate of 8.2% over the past four years (2021–22 to 2024–25). Growth for FY2026 is projected at 6.5%, maintaining India’s status as the fastest-growing major economy.