April 28, 2025
The Governor noted that India’s domestic demand, contributing about 90% to GDP, shields the economy from global spillovers
Malhotra told global investors in Washington, D.C., that India provides a transparent, rule-based policy ecosystem ideal for productive, long-term investments
He said India’s financial markets ensure seamless entry and exit for foreign investors, reflecting the economy’s maturity
Despite a turbulent global outlook, India’s growth is projected to remain robust at 6.5% in FY2026, the highest among major economies
Amid uncertainties major global economies face due to tariff-related risks, Reserve Bank of India (RBI) Governor Sanjay Malhotra said India offers strong growth and stability to investors seeking long-term value and opportunity.
Speaking at the US-India Economic Forum, organised by the Confederation of Indian Industry (CII) and the US India Strategic Partnership Forum (USISPF) in Washington DC on 25 April, Malhotra emphasised that India remains an economy underpinned by monetary, financial and political stability, policy consistency, a congenial business environment, and robust macroeconomic fundamentals.
“At a time when many advanced economies are grappling with economic headwinds and a deteriorating outlook, India continues to present strong growth and stability, making it a natural choice for investors seeking long-term opportunity,” he said.
Malhotra highlighted that India’s strong domestic demand — contributing about 90% to GDP — and relatively lower dependence on exports insulate the economy from external shocks. In contrast, merchandise exports account for only around 12% of India’s GDP, much lower than in peer economies.
He further noted that India offers a transparent, rule-based, forward-looking policy ecosystem, creating an ideal setting 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,” Malhotra told the gathering, encouraging global investors to collaborate with and invest in India.
The Governor stressed that the country’s financial markets offer seamless entry and exit for foreign investors, a reflection of the economy’s maturity and resilience.
His remarks came against the backdrop of US President Donald Trump’s announcement on 2 April of sweeping reciprocal tariffs on America’s major trading partners. This move has heightened the risk of a global growth slowdown and trade wars, impacting financial markets worldwide, including India.
Malhotra pointed out that India’s banking sector, with healthy balance sheets, strong profitability, reduced non-performing assets, and adequate capital buffers, is well-positioned to support the investment needs of society and industry.
He highlighted that the Indian economy had shown remarkable resilience and dynamism, posting an average annual growth rate of 8.2% between 2021-22 and 2024-25.
He said growth in FY2026 is expected to remain robust at 6.5%. “Although this rate is lower than recent years and falls short of India’s aspirations, it remains broadly in line with historical trends and is the highest among major economies,” he added.
However, two major international agencies — the World Bank and the International Monetary Fund (IMF) — have recently revised their projections downwards. The World Bank has trimmed India’s growth forecast for FY2026 by 0.4 to 6.3%, while the IMF has reduced its estimate by 0.3 to 6.2%.
Source: Indian Express