India is projected to grow at 6.5% this year, remaining the fastest-growing major economy globally, despite global uncertainties, according to RBI Governor Sanjay Malhotra. At the US-India Economic Forum, Malhotra emphasized India’s stability, resilience, and strong financial sector as key drivers of growth, making it an attractive choice for long-term investors.
India continues to present robust growth and stability, positioning itself as a prime destination for investors seeking long-term value and opportunities, according to Reserve Bank of India (RBI) Governor Sanjay Malhotra. Speaking at the US-India Economic Forum, organized by the Confederation of Indian Industry and US India Strategic Partnership Forum in Washington DC, Malhotra highlighted that despite global uncertainties, the Indian economy is set to grow by 6.5% this year, maintaining its status as the fastest-growing major economy.
Malhotra emphasized that while many advanced economies are grappling with economic challenges and negative outlooks, India stands out by offering strong growth prospects and stability. “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,” he said. The 6.5% growth forecast, although lower than recent years and not meeting India’s aspirations, remains in line with past trends and is the highest among major global economies, he added.
He pointed out that India’s economy is supported by a combination of stability in its monetary, financial, and political systems, consistent policy frameworks, a business-friendly environment, and solid macroeconomic fundamentals. Malhotra stated that the country offers a policy ecosystem that is transparent, rule-based, and forward-looking, making it an ideal place for productive long-term investments.
Over the past decade, India has made significant strides, moving from being the 10th largest economy to the 5th largest. In terms of purchasing power parity, India is already the third-largest economy globally. “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,” Malhotra stated.
The RBI governor also assured that India’s financial sector remains strong and dynamic, efficiently meeting the funding needs of various economic players. He lauded the banking sector for its resilience, noting its ability to meet the country’s vast funding requirements with a solid balance sheet. “The soundness of the scheduled commercial banks has been bolstered by strong profitability, lower non-performing assets, and adequate capital and liquidity buffers,” he said. The non-banking financial companies (NBFCs) sector is also in good health, he added.
Although bank credit growth has moderated in recent months, it continues to be in double digits (around 12%), compared to the historical average of 10.5% over the past decade. Malhotra reaffirmed the RBI’s commitment to enhancing the capacity, responsiveness, and resilience of both the banking and non-banking financial sectors, with a focus on balancing regulation with efficiency and stability. “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,” he concluded.
This message from the RBI governor highlights India’s ongoing economic growth despite global challenges and its readiness to attract long-term investments through a resilient financial system and a favorable policy environment.
