Daijiworld Media Network - Washington
Washington, Apr 27: Despite a turbulent global financial climate, India is projected to clock an impressive 6.5% economic growth this financial year, according to Reserve Bank of India (RBI) Governor Sanjay Malhotra.
Speaking at the US-India Economic Forum, organised by the Confederation of Indian Industry (CII) and US India Strategic Partnership Forum (USISPF), Malhotra underscored India's resilience and appeal. "While many advanced economies grapple with slowing growth and uncertainty, India stands tall as a beacon of stability and opportunity," he said.
Highlighting India’s transparent and forward-looking policy environment, Malhotra positioned the country not just as a lucrative investment destination but as a strategic partner in shaping global prosperity. “The time to invest, collaborate, and innovate in India is now,” he urged.
Malhotra emphasized India's economic momentum, noting that over the past four years (2021-2025), the country has maintained an impressive average growth rate of 8.2%, outpacing the global landscape. This performance marks a significant leap from the 6.6% average growth rate seen during the previous decade (2010-2019).
In the last ten years, India has surged from being the tenth-largest economy to the fifth, and when measured by purchasing power parity, it already ranks third globally. “Soon, even in nominal terms, India will claim the third spot among the world’s largest economies,” he stated with confidence.
The Governor also pointed to the robust health of India's financial system. The banking sector, fueled by strong profits, low non-performing assets, and ample liquidity, continues to fund economic expansion efficiently. The non-banking financial companies (NBFCs) sector, too, remains strong and resilient.
Despite some moderation, bank credit growth remains robust at around 12%, outpacing the decade-long average of 10.5%. Malhotra noted that with India's relatively low private debt-to-GDP ratio, there is vast headroom for expansion, making the financial system well-positioned to meet rising investment demands.
Additionally, Malhotra spotlighted the government’s proactive push into sunrise sectors such as space technology, semiconductors, renewable energy, and electric vehicles (EVs), opening exciting new avenues for investors.
“India offers not just growth, but partnership in progress,” Malhotra concluded, inviting global stakeholders to participate in India's dynamic economic journey.