RBI Governor Sanjay Malhotra Urges US Businesses to Invest in India’s Growth Story
Washington: Reserve Bank of India (RBI) Governor Sanjay Malhotra has called on American industries to invest in India, highlighting the nation’s consistent policy environment and status as the world’s fastest-growing major economy.
Speaking at the US-India Economic Forum, hosted jointly by the Confederation of Indian Industry (CII) and the US-India Strategic Partnership Forum (USISPF) on Friday, Malhotra projected India’s economic growth at 6.5% for the current fiscal year, despite heightened global market volatility.
“At a time when advanced economies are facing strong headwinds, India stands out with its robust growth and stability, making it a natural destination for investors seeking long-term opportunities,” Malhotra said.
He emphasized India’s enduring strengths, citing monetary, financial, and political stability, a predictable policy framework, a business-friendly environment, and strong macroeconomic fundamentals.
Malhotra described India’s investment landscape as transparent, rule-based, and forward-looking a favorable environment for sustainable investments. “India is not merely an investment destination; it is a partner in shared prosperity,” he said, encouraging collaboration, innovation, and greater US investment in India’s future.
Highlighting India’s economic momentum, Malhotra noted that between 2021-22 and 2024-25, India achieved an average annual growth rate of 8.2%, a significant rise from 6.6% recorded during 2010-2019. Even amid global uncertainties, India’s expected 6.5% growth this year remains the highest among major economies.
While acknowledging that 6.5% growth falls short of India’s long-term aspirations, Malhotra said it remains aligned with historical trends. He also noted India’s significant rise over the past decade — moving from the world’s 10th to the 5th largest economy and predicted it would soon become the third-largest economy by nominal GDP, having already reached third position by purchasing power parity.
“Our aspiration is to become a developed nation Viksit Bharat by 2047, the centenary of our independence,” Malhotra added, expressing confidence in India’s long-term growth trajectory.
Addressing the financial sector, Malhotra said Indian banks and non-banking financial companies (NBFCs) are well-positioned to support economic expansion, demonstrating resilience through strong profitability, lower non-performing assets, and solid capital and liquidity buffers. Bank credit growth remains strong at about 12%, higher than the 10.5% average over the past decade.
He affirmed that the RBI is focused on strengthening the banking and financial system by balancing regulation with efficiency and stability.
Malhotra also spotlighted India’s burgeoning investment opportunities in emerging sectors like space technology, semiconductors, renewable energy, and electric vehicles (EVs). India’s increasing role in global supply chains and its rise as a hub for SaaS innovation, especially in generative AI, offer additional avenues for strategic investment, he said.