Washington, April 27 (IANS) India is expected to record a robust 6.5 per cent growth in the current financial year despite a tremendous increase in uncertainty and volatility in global financial markets, as per RBI Governor Sanjay Malhotra.  Addressing the US-India Economic Forum organised by the Confederation of Indian Industry (CII) and US India Strategic Partnership Forum (USISPF) here, Malhotra 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."

The RBI Governor pointed out 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. 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,” he said. 

Malhotra highlighted that the Indian economy has demonstrated remarkable resilience and dynamism. Over the past four years (2021-22 to 2024-25), it has 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). No wonder, over the last ten years, India has leapfrogged from the tenth largest economy to the fifth. In terms of purchasing power parity, it is already third. Even nominally, the country is poised to become the third-largest economy shortly, he added.

"I am sanguine of our continued success as there are a lot of positive factors that give me this confidence," the central bank chief remarked. In this context, he pointed out that India's financial sector is strong and vibrant, efficiently catering to the 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 sheets. The soundness of the country’s banks 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 added. "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," the RBI Governor said. He also highlighted that proactive government policies present unparalleled opportunities for investment in sunrise sectors such as space, semiconductors, renewable energy, and electric vehicles (EVs).

/IANS