India's economic resilience is drawing attention amid global geopolitical uncertainties, according to Tuhin Kanta Pandey, the chief of the Securities and Exchange Board of India (Sebi). Speaking at the ICICI Securities’ India Investor Conference in Mumbai, Pandey emphasized that India's growth story is anchored in domestic consumption demand, strong government investments, and improving private sector participation.
Economic Growth Amid Global Turmoil
Pandey noted that ongoing geopolitical developments, such as the war in West Asia, continue to affect inflation, trade flows, exchange rates, and external balances globally. Despite these challenges, India stands out for its resilience. "India remains one of the fastest-growing major economies, with growth estimated at 7.7% in FY26," Pandey stated. However, he acknowledged that there is some moderation in FY27 growth estimates to 6.6%, with potential risks of a higher current account deficit and inflation.
The Broader Growth Story
Pandey highlighted that India's growth is not just about economic expansion but also involves formalisation, financialisation of savings, and trust in institutions. This broader growth narrative is crucial for sustaining India's economic momentum.
"It is about formalisation. It is about the financialisation of savings. And importantly, it is about trust in institutions," said Tuhin Kanta Pandey.
Regulatory Challenges
While interacting with the media, Pandey declined to comment on the ongoing investigation relating to Rajesh Exports, stating that the matter was subjudice. On June 3, Sebi banned Rajesh Mehta, the main promoter and chairman of the company, from trading in the company’s stocks, alleging inflated revenues worth up to Rs 15.2 lakh crore over five years to FY25. The company has denied the charges.
Future Outlook
The next milestone for India's economic trajectory will be closely watched by investors and analysts, particularly in light of the upcoming fiscal year projections and ongoing regulatory developments.
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