Reserve Bank of India (RBI) 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.

Speaking at the US-India Economic Forum organised by the Confederation of Indian Industry (CII) and US India Strategic Partnership Forum (USISPF) in Washington DC, Governor Malhotra said 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.

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“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,” he 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.”

Speaking on the Indian banking sector, Governor Malhotra said that with its healthy balance sheet and adequate liquidity and capital buffers, it is poised to meet the investment needs of the industry.

“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 society and industry.”

Banking sector, which continues to meet the large funding requirements of the economy, has demonstrated resilience with a healthy balance sheet, the Governor said.

“The soundness of scheduled commercial banks has been bolstered by strong profitability, lower non-performing assets, and adequate capital and liquidity buffers. The health of the NBFC sector is also robust,” he highlighted.

“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.