Amid the uncertainties faced by major global economies due to tariff-related risks, India offers a strong growth and stability to investors looking for long-term value and opportunity, Reserve Bank of India (RBI) Governor Sanjay Malhotra said.
India continues to be an economy supported by stability — monetary, financial and political; policy consistency and certainty; congenial business environment; and strong macroeconomic fundamentals, the Governor said.
“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,” Malhotra said in his address at the US-India Economic Forum, organised by Confederation of Indian Industry (CII) and US India Strategic Partnership Forum (USISPF), Washington on April 25.
“Our strong domestic demand and relatively lower dependence on exports cushions the Indian economy from external spillovers,” he said.
India’s domestic demand contributes about 90 per cent to GDP whereas merchandise exports contribute about 12 per cent of GDP, which is much lower compared to some of our peers.
The Governor highlighted that 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,” he said, while asking global investors to collaborate and invest in India.
The country’s financial markets offer seamless entry and exit for foreign investors, reflecting the maturity of its economy.
On April 2, US President had announced sweeping reciprocal tariffs on America’s major trading partners. The announcement, which sent ripples through financial markets across the globe, including in India, has increased the risk of global growth slowdown and an escalation of trade wars.
He said the country’s banking sector, with its healthy balance sheet, strong profitability, lower non-performing assets and adequate capital buffers is poised to meet the investment needs of the society and industry.
Malhotra said that the Indian economy has demonstrated remarkable resilience and dynamism, with an average annual growth rate of 8.2 per cent over the past four years (2021-22 to 2024-25).
“Even this year (FY2026), our growth is expected to remain robust at 6.5 per cent. This is despite the tremendous increase in uncertainty and volatility in global financial markets. While this rate is lower than in recent years and falls short of India’s aspirations, it remains broadly in line with past trends and the highest among major economies,” the Governor said.
The statement comes even as two international agencies — the World Bank and the International Monetary Fund (IMF) — have recently cut their growth forecast for India for FY2026. The World Bank has slashed India’s growth forecast by 0.4 percentage points to 6.3 per cent from 6.7 per cent, while the IMF has lowered the country’s growth estimate by 0.3 percentage points to 6.2 per cent from 6.5 per cent.
