Reserve Bank of India (RBI) Governor Sanjay Malhotra
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REUTERS
Making a strong pitch to US-based companies to collaborate, innovate, and invest in India, RBI Governor Sanjay Malhotra said the country has lot of positive factors, including political, policy and financial stability; fiscal prudence and efficiency; thrust on infrastructure; demographic dividend; and digitalisation.
Nominally, the country is even poised to become the third largest economy shortly, he added.
In his keynote address at the US-India Economic Forum organised by the Confederation of Indian Industry and US India Strategic Partnership Forum, Washington DC, Malhotra emphasised that 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,” he said.
Domestic demand
Furthermore, India’s strong domestic demand and relatively lower dependence on exports cushions the Indian economy from external spillovers.
Domestic demand contributes about 90 per cent of GDP whereas merchandise exports contribute about 12 per cent of GDP which is much lower compared to some of India’s peers.
“India 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,” the Governor said.
He underscored that India is poised to be a dynamic powerhouse of opportunities, innovation, and sustainable growth in the years to come.
Malhotra highlighted that the Indian economy has demonstrated remarkable resilience and dynamism.
“Over the past four years (2021-22 to 2024-25), it has recorded an average annual growth rate of 8.2 per cent. It was and continues to be the fastest-growing major economy in the world. This is a significant step up from the average growth rate of 6.6 per cent in the preceding decade (2010 to 2019),” he said.
He noted that even this year, the country’s growth is expected to remain robust at 6.5 per cent. This is despite the tremendous uncertainty and volatility in global financial markets.
“While this rate is lower than recent years and falls short of India’s aspirations, it remains broadly in line with past trends and the highest among major economies.
“No wonder, over the last 10 years, we have leapfrogged from the tenth largest economy to the fifth. In terms of purchasing power parity, we are already third. Even nominally, we are poised to become the third largest economy shortly,” Malhotra said, adding the country aspires to become Viksit Bharat —a developed economy by 2047, when it completes 100 years of its independence.
While there is indeed a scope for India’s growth trajectory to rise over the medium to long-term, the Governor said he is sanguine about its continued success.
Published on April 27, 2025
