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, Sanjay Malhotra, Governor, Reserve Bank of India noted in his speech at the US-India Economic Forum organised by the Confederation of Indian Industry (CII) and US India Strategic Partnership Forum (USISPF). India 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).
Even this year, India’s growth is expected to remain robust at 6.5 per cent. This is despite the tremendous increase in uncertainty and volatility in global financial markets. 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. Over the last ten years, we have leapfrogged from the tenth largest economy to the fifth. In terms of purchasing power parity, we are 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, he opined.
The RBI chief noted that political and policy stability with certainty are prerequisites for long-term planning of investments to fuel growth in any economy. He also highlighted that Financial stability is essential for businesses and people to make expenditure and investment decisions with confidence. India’s financial sector is strong and vibrant, efficiently catering to funding requirements of various economic agents.