Mumbai: The Reserve Bank of India (RBI) governor Sanjay Malhotra urged the US industry to invest in India, stating that the country is poised to be a dynamic powerhouse of opportunities, innovation, and sustainable growth in the years to come.
Speaking at the US-India Economic Forum organised by the Confederation of Indian Industry (CII) and US India Strategic Partnership Forum (USISPF) in Washington DC on Friday, (the speech was uploaded on the RBI site on Sunday) Malhotra said that the over the past four years (2021-22 to 2024-25), India has recorded an average annual growth rate of 8.2 per cent. He said that despite the tremendous increase in uncertainty and volatility in global financial markets, the country is expected to record a growth rate of 6.5 per cent in the current financial year.
“India continues to be an economy supported by stability – monetary, financial and political; policy consistency and certainty; congenial business environment; and strong macroeconomic fundamentals. 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. Furthermore, our strong domestic demand and relatively lower dependence on exports cushions the Indian economy from external spillovers,” Malhotra told the gathering.
He added that the country offers a policy ecosystem that is transparent, rule-based, and forward-looking – 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. Together, we have the chance to shape the future – not only for India but for a better world. I invite you to be a part of this journey, to collaborate, innovate, and invest in India,” added the RBI governor.
He said that the proactive government policies also present unparalleled opportunities for investment in sunrise sectors such as space, semiconductors, renewable energy, electric vehicles (EVs). He also said that the country is positioning itself as a critical link in global supply chains, encouraging local sourcing and manufacturing. It is also becoming a global SaaS innovation hub, especially in generative AI, he added.
Speaking about the country’s achievements, Malhotra said that over the last 10 years, the country 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. We aspire to become Viksit Bharat, i.e., a developed economy by 2047, when we complete 100 years of our independence. While there is indeed a scope for India’s growth trajectory to rise over the medium to long-term, I am sanguine of our continued success,” the governor said.