India remains an attractive destination for long-term investment, with solid economic fundamentals, a robust financial system, and a commitment to ongoing structural reforms, according to Reserve Bank of India (RBI) Governor Shaktikanta Das. Speaking at various global events, including the World Economic Forum in Davos and the Future of Finance Forum in Singapore, Das emphasized India’s growth potential and its capacity to provide sustained value to investors in the coming years.
Positive Economic Growth Forecast
Governor Das has projected India’s real GDP growth to be 7.2% for the fiscal year 2024–25, driven primarily by strong domestic demand and ongoing structural reforms. He noted that the country’s growth potential exceeds 7.5%, supported by a youthful, dynamic workforce, a diverse economy, and a strong entrepreneurial culture.
The RBI’s monetary policy, including successive interest rate reductions and liquidity support, is designed to stimulate economic activity amidst global uncertainties. Inflation has also cooled to a five-year low of 3.34% as of March 2025, providing the central bank with room to keep its growth-supportive stance intact.
Structural Reforms and Investment Environment
Das credited India’s positive economic outlook to several recent structural reforms that have enhanced both short-term and long-term growth prospects. He encouraged the private sector to increase investments, highlighting the country’s underlying economic drivers, which are poised for expansion.
The RBI’s focus on maintaining price stability, targeting a sustainable reduction in retail inflation to 4%, provides a solid foundation for investments. According to Das, price stability is essential for sustainable economic growth, as it reduces uncertainty and creates a favorable environment for both savings and investment.
Resilience Amid Global Challenges
Despite facing global economic challenges, such as trade conflicts and geopolitical tensions, India remains less vulnerable due to its strong domestic consumption and investment. The country’s robust macroeconomic fundamentals, favorable monsoon forecasts, and diversified foreign direct investment help protect the economy from external shocks.
Das stressed the importance of cooperation between the RBI and the Indian government to create “Goldilocks conditions” — a balanced approach between inflation control and fostering growth, through well-calibrated monetary and fiscal policies.
Conclusion
India’s ongoing economic growth, structural reforms, and stable macroeconomic environment position it as a key hub for long-term investment. Governor Shaktikanta Das’s remarks underscore the country’s potential to deliver consistent value to investors, particularly those looking to capitalize on emerging markets. With a combination of solid economic policies and positive growth outlook, India stands out as a compelling choice for investors seeking long-term stability and returns.
