India: The World’s Next Investment Magnet, Declares RBI Governor Malhotra

Sanjay Malhotra, the Governor of the Reserve Bank of India (RBI), has labeled India a "natural choice" for investors looking for long-term value and opportunity, given the country's strong fundamentals for the economy and stable policies. Addressing the US-India Economic Forum in Washington, D.C., Malhotra noted that India is still the fastest-growing major economy in the world, with a growth projection of 6.5% for the current financial year despite the continued volatility in global markets. 

 

Malhotra highlighted India's average annual growth of 8.2% over the past four years, up from the 6.6% average over the last decade. He said that India's growth resilience can be even partially attributed to India's strong domestic demand, which represents around 90% of GDP, and supposedly low dependence on exports. 

 

Further emphasizing India as a suitable country for long-term productive investment, the Governor pointed to India's transparent, rule-based, and forward-looking policy ecosystem. The Governor added that stability in politics, finance and monetary, a favorable business environment, and strong fundamentals for growth in the macroeconomy have all supported India's growth. 

 

Malhotra also invited businesses in the US to collaborate, innovate, and invest in India, stressing that India is not just a destination for investment but is also a "partner in prosperity." India is poised to be the world’s third-largest economy and also making progress in space, semiconductors, renewable energy, and electric vehicles, according to Malhotra. 

 

Source: The Hindu Business Line