RBI Guv Malhotra Urges US Investors to Bet on India as "Partner in Prosperity" Amid Global Turmoil

Making a strong case for India, Reserve Bank of India governor Sanjay Malhotra told American businesses that India remains the world’s fastest-growing major economy and offers something rare like "stability" today.

“Many economies are facing strong headwinds, but India continues to offer steady growth, stable policies, and a forward-looking business environment,” Malhotra said at the event organised by the Confederation of Indian Industry (CII) and US-India Strategic Partnership Forum (USISPF) in Washington.

He underlined that India is expected to grow by 6.5% in FY26 despite a tremendous increase in uncertainty and volatility in global financial markets. "As the world's fastest-growing major economy, India is not just a destination for investment, it is a partner in prosperity," he said.

"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," Malhotra invited businesses.

Demand and Stability

The governor further underlined India’s robust domestic demand—contributing 90% of GDP—as a key buffer against global shocks, along with deepening capital markets and strong bank balance sheets. Gross FDI inflows rose to $75.1bn in April-February 2024-25 from $65.2bn USD during the same period a year ago. However, he asserted that net FDI inflows moderated during this period due to higher repatriations and outward investment.

The foreign exchange reserves also stand at a healthy $686bn, covering nearly a year’s worth of imports.

He also noted that while offering excellent opportunities for investment, the banking sector is also poised to meet the investment needs of the industry and society, as the private debt to gross domestic product (GDP) is still on the lower side.

“We are committed to further enhancing the capacity, responsiveness and resilience of the banking and non-banking financial sectors with emphasis on balancing regulation with efficiency and stability,” the governor stated.