RBI predicts Indian economy to grow at 6.5%, Sanjay Malhotra calls for US industries to invest amid global uncertainties

India's central bank, the Reserve Bank of India (RBI), Governor Sanjay Malhotra has called for US industries to invest in India, reassuring them that the nation continues to be the fastest-growing major economy, reported the news agency PTI on Sunday, April 27. 

Sanjay Malhotra also cited that India continues to be stable and offers strong growth opportunities for investors who are seeking long term value and investment opportunity.

“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,” said Malhotra, cited the news agency.

He also reiterated that India continues to be an economy which is supported by monetary, financial and political stability, which is ideal for the long-term goal. 

“Furthermore, our strong domestic demand and relatively lower dependence on exports cushions the Indian economy from external spillovers,” he said.

India's 6.5% growth expectation

The Reserve Bank of India also said that the Indian economy is likely to grow 6.5 per cent this year despite the rising global uncertainties due to the ongoing trade war between the United States and other world nations.

Governor Malhotra also said that this rate is lower than that of recent years. However, it remains broadly in line with past trends.

“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,” said Governor Malhotra at a speech in Washington, reported the news agency Bloomberg.

The outlook for the Indian growth story has taken a hit after US President Donald Trump sparked a global trade war with his ‘reciprocal tariffs.’

The Reserve Bank of India (RBI) started cutting interest rates in early April, overall changing its monetary policy stance to accommodative which signals more easing in the economy.