RBI Governor Sanjay Malhotra Asks US Industry To Invest In India
Washington:
Reserve Bank Governor Sanjay Malhotra has exhorted the US industry to invest in India, stressing that the country continues to be the fastest growing major economy supported by policy consistency and certainty.
Addressing the US-India Economic Forum organised by the Confederation of Indian Industry (CII) and US India Strategic Partnership Forum (USISPF) here on Friday, Mr Malhotra said that India is expected to record a growth rate of 6.5 per cent in the current financial year despite tremendous increase in uncertainty and volatility in global financial markets.
"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," the governor said.
India, he added, "continues to be an economy supported by stability -- monetary, financial and political; policy consistency and certainty; congenial business environment; and strong macroeconomic fundamentals." Mr Malhotra said 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, adding, "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."
Observing that the Indian economy has demonstrated remarkable resilience and dynamism, Mr Malhotra said that over the past four years (2021-22 to 2024-25), the country recorded an average annual growth rate of 8.2 per cent.
"It was and continues to be the fastest-growing major economy in the world. This is a significant step up from the average growth rate of 6.6 per cent in the preceding decade (2010 to 2019)," he added.
Even in the current financial year, he said that growth was expected to remain robust at 6.5 per cent. This, he added, "is despite the tremendous increase in uncertainty and volatility in global financial markets." Although 6.5 per cent growth rate falls short of India's aspirations, it remains broadly in line with past trends and the highest among major economies, he said.
Mr Malhotra told the gathering over the last ten years, India has leapfrogged from the tenth largest economy to the fifth. In terms of purchasing power parity, India is already third.
"Even nominally, we are poised to become the third largest economy shortly. We aspire to become Viksit Bharat, i.e., a developed economy by 2047, when we complete 100 years of our independence. While there is indeed a scope for India's growth trajectory to rise over the medium to long-term, I am sanguine of our continued success," the governor said.
He further said India's financial sector is strong and vibrant, efficiently catering to funding requirements of various economic agents.
The banking sector, which continues to meet the large funding requirements of the economy, has demonstrated resilience with healthy balance sheet.
He said the soundness of scheduled commercial banks (SCBs) has been bolstered by strong profitability, lower non-performing assets and adequate capital and liquidity buffers. The health of the non-banking financial companies (NBFCs) sector is also robust.
Bank credit growth, although moderating in recent months, continues to be in double digits (about 12 per cent) compared to an average of about 10.5 per cent in the last 10 years, he said.
"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. While offering excellent opportunities for investment, as private debt to GDP is still on the lower side, the banking sector is poised to meet the investment needs of the society and industry," Mr Malhotra said.
The governor also said proactive government policies also present unparalleled opportunities for investment in sunrise sectors such as space, semiconductors, renewable energy, electric vehicles (EVs).
India is positioning itself as a critical link in global supply chains, encouraging local sourcing and manufacturing. It is also becoming a global SaaS innovation hub, especially in generative AI, he added.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Mint
26 minutes ago
- Mint
Boeing shares fall sharply as Air India crash spotlights series of previous accidents
On Monday, June 16, the biennial Paris Air Show begins at Le Bourget, on the outskirts of Paris. As the stage is set for the show and aircraft manufacturers fly in their latest products and set up stalls, Boeing shares saw a sharp dive of over 7 per cent in pre-opening. The shares nosedived after VT-ANB, the 13-year-old Dreamliner with Air India, went down in Ahmedabad from where it took off for a scheduled flight to London Gatwick. The aircraft was one of the 27 the airline has in its fleet, and the flight was a codeshare with equity partner Singapore Airlines. The flight, which departed from Ahmedabad at 1338 hrs, was carrying 242 passengers and crew members on board the Boeing 787-8 aircraft. Of these, 169 are Indian nationals, 53 are British nationals, one Canadian national and seven Portuguese nationals, as per the airline, which it posted on social media. The aircraft was delivered to Air India in January 2014 and configured with 18 Business class and 238 economy class seats. The loss of an aircraft, the first for an Indian airline after the Kozhikode crash in 2020 and that too involving a technologically advanced aircraft like the Dreamliner, has cast a shadow on the Paris Air Show and explains the dip in share price for Boeing in the pre-opening session. Paris Air Show is one of the major airshows where large orders are announced or signed. Both IndiGo and Air India signed their record-breaking orders at Paris in 2023, with Air India expected to add more planes to its order book next week, a possibility that may not happen because of the events in Ahmedabad. The crash may be the first for a Dreamliner, but Boeing is in the news again. The airline faced two fatal crashes with the MAX 8 aircraft, one in Indonesia and one in Ethiopia, after which a global grounding took place. The MAX kept making news at periodic intervals for all the wrong reasons, until recently, the FAA and Boeing worked closely to ensure quality was delivered. As if the MAX crisis was behind it, a new one has crash-landed just days before the airshow. The Boeing 787 Dreamliner faced significant battery issues in 2013, leading to a worldwide grounding of the fleet. These problems stemmed from lithium-ion batteries used in the aircraft's auxiliary power unit (APU), which were prone to thermal runaway and fires. The issues ultimately resulted in the grounding of the Dreamliner fleet, with the FAA and NTSB investigating the design and manufacturing of the batteries. Air India had also grounded its planes and subsequently saw the changes done before flying them again. The aircraft has had no issues since then. Boeing has a robust order book for the Dreamliner, including 20 from Air India, the first of which is due by end of this year. In less than 14 years, the 787 Dreamliner fleet has carried more than one billion passengers, faster than any other widebody jet in aviation history. The 787 has unlocked more than 425 new nonstop routes around the world, many of which were never served previously. Boeing has over 1,100 787s in service globally. Not just Boeing, the fatal crash will cast a shadow on the airshow in Paris next week with muted celebrations for orders and possibly delaying orders from Air India, if at all they were going to place one and possibly other Indian carriers. The crash will be the talking point, especially against the backdrop of the world community being in Delhi early this month for the 81st IATA AGM, which was held in Delhi after a gap of over four decades and heard about the India growth story. The investigations take time and the focus first is to get the Flight Data Recorder (FDR) and Cockpit Voice Recorder (CVR) and send them for investigation which will give key answers. Boeing will be involved in this process as is the norm. Until then, at the Paris air show, questions will be asked about what led to the crash and it is too early to have definite answers.
Hindustan Times
26 minutes ago
- Hindustan Times
Top 4 trending workplace designs to turn offices into productivity powerhouses
Productivity is not just something that comes from within, from our mental willpower. It is also shaped by the space around us. Beyond productivity, mental wellbeing is equally important, signifying the importance of workplace designs to be supportive. This is why workplace design needs to be done in a way that acts as an external motivator, regulating moods, improving focus, and supporting overall emotional wellbeing. In an interview with HT Lifestyle, Aryaman Vir, Founder and CEO of Morpho Dimensions, shared insights on how workplace interiors can significantly benefit from key design interventions that boost productivity, wellbeing, and adaptability. He said, 'India's office spaces are experiencing a significant transformation, motivated by a straightforward realisation, people work better when their environment supports how they truly function, not how we believe they should function.' Aryaman Vir shared four key changes reshaping Indian workplaces:
&w=3840&q=100)
First Post
26 minutes ago
- First Post
In Graphics: Looking at the iconic Boeing 787-8 Dreamliner involved in the Air India plane crash
An Air India Boeing 787 Dreamliner crashed shortly after takeoff from Ahmedabad en route to Gatwick, killing 241 people on board. The aircraft issued a MAYDAY call before losing contact. The Dreamliner, known for its advanced design and long-haul efficiency, was first inducted by Air India in 2012 read more Then-Boeing India President Dinesh Keskar (C) poses in front of the Boeing 787 Dreamliner aircraft for All Nippon Airways (ANA) after its India debut landing at the Indira Gandhi international airport in New Delhi, July 13, 2011. File Image/Reuters An Air India Boeing 787 Dreamliner operating as flight AI-171 from Ahmedabad to Gatwick crashed shortly after takeoff on Wednesday afternoon, reportedly killing all 242 people on board. The Directorate General of Civil Aviation (DGCA) confirmed that the aircraft issued a 'MAYDAY' distress signal moments after departing from Runway 23 at 1:39 pm IST, but lost contact with air traffic control (ATC) shortly thereafter. The passenger manifest included 169 Indian nationals, 53 British citizens, seven Portuguese, and one Canadian. STORY CONTINUES BELOW THIS AD The crash site near the airport perimeter was engulfed in smoke, with emergency teams, fire services, and recovery units mobilised for rescue and investigation. Authorities confirmed that the last recorded communication from the cockpit was the emergency 'MAYDAY' call. More from Explainers Helpline numbers launched after Air India flight crash in Ahmedabad The aircraft involved belonged to the Boeing 787 Dreamliner family, a long-haul, wide-body, twin-engine jet developed by Boeing Commercial Airplanes. Launched in 2004 and entering service in 2011, the 787 was designed for fuel efficiency and advanced composite material usage. Air India was among the earliest carriers in Asia to induct the Dreamliner, receiving its first 787-8 in 2012. We take a look at the iconic Dreamliner, in graphics: The DGCA and civil aviation ministry Prime Minister Narendra Modi has directed top officials to oversee relief operations and ensure all assistance is provided to affected families.
