India, As Fastest Growing Economy, Is Ideal Investment Destination: RBI Governor

Washington: India is anticipated to file a strong 6.5 in keeping with cent expansion within the present monetary yr regardless of an amazing build up in uncertainty and volatility in international monetary markets, as in keeping with RBI Governor Sanjay Malhotra. 

Addressing the US-India Economic Forum organised by means of the Confederation of Indian Industry (CII) and US India Strategic Partnership Forum (USISPF) right here, Malhotra mentioned: “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.”

The RBI Governor identified that India gives a coverage ecosystem this is clear, rule-based, and forward-looking — an excellent surroundings for long-term and productive investments.

“As the arena’s fastest-growing main economic system, India is not only a vacation spot for funding – this can be a spouse in prosperity. Together, we’ve got the risk to form the long run – now not just for India however for a greater global. I invite you to be part of this adventure, to collaborate, innovate, and spend money on India,” he mentioned.

Malhotra highlighted that the Indian economic system has demonstrated exceptional resilience and dynamism. Over the previous 4 years (2021-22 to 2024-25), it has recorded a median annual expansion price of 8.2 in keeping with cent. It was once and remains to be the fastest-growing main economic system on this planet. This is a vital step up from the common expansion price of 6.6 in keeping with cent within the previous decade (2010 to 2019).

No surprise, during the last ten years, India has leapfrogged from the 10th greatest economic system to the 5th. In phrases of buying energy parity, it’s already 0.33. Even nominally, the rustic is poised to grow to be the third-largest economic system in a while, he added.

“I am sanguine of our continued success as there are a lot of positive factors that give me this confidence,” the central financial institution leader remarked. In this context, he identified that India’s monetary sector is robust and colourful, successfully catering to the investment necessities of more than a few financial brokers.

The banking sector, which continues to satisfy the massive investment necessities of the economic system, has demonstrated resilience with wholesome steadiness sheets. The soundness of the rustic’s banks has been strengthened by means of sturdy profitability, decrease non-performing property and ok capital and liquidity buffers. The well being of the non-banking monetary corporations (NBFCs) sector could also be powerful.

Bank credit score expansion, despite the fact that moderating in contemporary months, remains to be in double digits (about 12 in keeping with cent) in comparison to a median of about 10.5 in keeping with cent within the remaining 10 years, he added.

“While offering excellent opportunities for investment, as private debt to GDP is still on the lower side, the banking sector is poised to meet the investment needs of the society and industry,” the RBI Governor mentioned.

He additionally highlighted that proactive govt insurance policies provide unprecedented alternatives for funding in dawn sectors corresponding to area, semiconductors, renewable power, and electrical automobiles (EVs).