India shouldn't let headwinds cloud its growth potential: Citi's Fraser

Citi Chair and CEO Jane Fraser says India remains the world's fastest-growing major economy and should stay focused on its long-term growth trajectory

Despite current headwinds, India remains the world’s fastest-growing major economy and should not allow near-term challenges to obscure its long-term growth potential, said Jane Fraser, Citi Chair and Chief Executive Officer, on Thursday.

 

“…It is about not selling itself short because of the short-term challenges that everybody is facing. Instead, it (India) should focused on the long-term potential and trajectory that the country is inexorably on”, she said at the Citi India Conference 2026.

 

Fraser had met Prime Minister Narendra Modi on Wednesday to discuss investment opportunities in India, capital flows, alternative energy and artificial intelligence (AI). The discussions centered on India's economic growth agenda and opportunities for Citi to support the country's development priorities.

 

The Prime Minister shared his vision for achieving the Viksit Bharat 2047 objective and discussed ways to accelerate economic growth and investment.

 

According to Citi, the meeting covered attracting global investment into India, supporting Indian companies’ overseas expansion, and opportunities in sectors such as renewable energy and artificial intelligence. The discussions also touched on the development of alternative energy sources, including solar power and green hydrogen, as well as the role of AI and regulation in supporting economic growth.

 

Fraser noted that India is Citi's second-largest geography by employee count and one of its largest markets globally. Most of the bank's clients worldwide have significant interests in India, she said, extending beyond technology to participation across the broader economy.

 

“Some of our biggest clients are Indian, and there are a fairly large number of them. I think that's a reflection of the role India plays globally. But what really struck me was the development of the payments network, digitisation, digital identity, and the speed with which all of that happened. And then we've seen it again with infrastructure getting built”, she said.

 

She also pointed to India's quick-commerce ecosystem, where products across categories are routinely delivered in less than an hour -- a level of convenience that remains uncommon in many developed economies.

 

Fraser drew contrast between countries seek to protect existing strengths with those willing to disrupt themselves to build for the future, placing India firmly in the latter category. "There are countries and companies that protect what they already have, and in the process, they somewhat diminish it," she said, adding that India stands out for its willingness to "build what you need" even if it requires disrupting existing models.

 

While such an approach may not always win immediate approval, she said, "it doesn't matter because you get results."

 

She added that Citi’s India and global teams are focused on helping the country, businesses and investors build what India needs for the future while navigating disruption.

 

Fraser also said globalisation is evolving rather than retreating, with new trade and economic corridors emerging around India and the Gulf region even as the world becomes more complex and multipolar.

 

"It's certainly not going away," she said, arguing that the growth of cross-border business and new economic linkages demonstrates that globalisation remains resilient. As global economic relationships become increasingly complex, Fraser said Citi's competitive advantage lies in its global network and its ability to help clients "navigate it, grow, succeed, and adapt" to changing conditions.

 

On AI, Fraser said there are "two races" underway: One to harness the technology's transformative potential and another to manage the risks it creates.

 

The first race, she said, involves deploying AI across businesses to improve coding, streamline processes, boost efficiency, reduce risk and create new revenue opportunities. Companies are also beginning to explore how AI can reshape business models and accelerate product-development cycles.

 

The second race focuses on managing AI-related threats, particularly in cybersecurity. "We don't compete on cyber. We collaborate very closely," Fraser said, noting that banks share responsibility for strengthening the financial system and protecting clients and infrastructure from emerging risks. As AI unlocks new capabilities, she said, institutions must also build collective and individual safeguards to defend against bad actors and minimise potential harms.