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India's long-term economic outlook remains strong despite recent market weakness, according to Jane Fraser, Chair and CEO of Citi, who said reforms, digitisation and artificial intelligence (AI) adoption continue to support the country's growth trajectory.
Speaking on the sidelines of the Citi India Conference 2026, Fraser said investors should focus on India's long-term fundamentals rather than short-term market fluctuations. Her comments come at a time when Indian equities have faced pressure from foreign investor outflows, slower growth expectations and currency weakness.
"The long-term story in India is intact," Fraser said after discussions with Prime Minister Narendra Modi during her visit to the country.
Fraser said she saw continued commitment from policymakers towards reforms, energy security, digital infrastructure and AI-led development. While acknowledging near-term challenges, she argued that many of the factors affecting Indian markets are global in nature rather than country-specific.
Also Read | Ridham Desai says AI boom may delay return of foreign flows to India
The Citi chief said any move to ease taxation on foreign investments could help improve sentiment in the short term. However, she noted that India's higher valuations compared with some other markets and relatively lower private investment activity have contributed to investor caution.
Despite those concerns, Fraser maintained confidence in India's long-term prospects and pointed to Citi's own performance in the country as evidence of continued economic opportunity.
Following Citi's exit from consumer banking operations in India, the bank has focused on corporate and institutional banking. Fraser said the strategy has delivered strong results.
According to her, Citi India recorded a 35% increase in net income, 30% revenue growth and 25% balance-sheet growth compared with the period when the consumer banking franchise was still part of the business.
Fraser cautioned that investors may be underestimating risks in terms of the global markets. While she stopped short of calling current conditions a bubble, she suggested that markets appear optimistic about economic and corporate outcomes.
Also Read | BofA sees no Fed hikes this year, says India’s deficit concerns are overstated
Fraser also defended the scale of global AI investment, saying she does not believe spending on the technology has become excessive. Instead, she sees AI creating new opportunities in areas such as healthcare, entrepreneurship and productivity.
Using India as an example, she said AI could help expand workforce participation, support small businesses and create new economic opportunities beyond large corporations.
She acknowledged that AI-driven disruption is inevitable but argued that the technology has the potential to create new industries and economic growth that can offset job displacement over time.
For the full interview, watch the accompanying video
Fraser added that companies should use AI not only to improve products and services but also to strengthen cybersecurity by identifying vulnerabilities and addressing them before they become major threats.
As Citi continues its transformation strategy globally, Fraser said the bank remains focused on improving returns while investing for long-term growth. She stressed that management would not sacrifice future opportunities in pursuit of short-term financial targets.
Catch all the latest updates from the stock market here
Speaking on the sidelines of the Citi India Conference 2026, Fraser said investors should focus on India's long-term fundamentals rather than short-term market fluctuations. Her comments come at a time when Indian equities have faced pressure from foreign investor outflows, slower growth expectations and currency weakness.
"The long-term story in India is intact," Fraser said after discussions with Prime Minister Narendra Modi during her visit to the country.
Fraser said she saw continued commitment from policymakers towards reforms, energy security, digital infrastructure and AI-led development. While acknowledging near-term challenges, she argued that many of the factors affecting Indian markets are global in nature rather than country-specific.
Also Read | Ridham Desai says AI boom may delay return of foreign flows to India
The Citi chief said any move to ease taxation on foreign investments could help improve sentiment in the short term. However, she noted that India's higher valuations compared with some other markets and relatively lower private investment activity have contributed to investor caution.
Despite those concerns, Fraser maintained confidence in India's long-term prospects and pointed to Citi's own performance in the country as evidence of continued economic opportunity.
Following Citi's exit from consumer banking operations in India, the bank has focused on corporate and institutional banking. Fraser said the strategy has delivered strong results.
According to her, Citi India recorded a 35% increase in net income, 30% revenue growth and 25% balance-sheet growth compared with the period when the consumer banking franchise was still part of the business.
Fraser cautioned that investors may be underestimating risks in terms of the global markets. While she stopped short of calling current conditions a bubble, she suggested that markets appear optimistic about economic and corporate outcomes.
Also Read | BofA sees no Fed hikes this year, says India’s deficit concerns are overstated
Fraser also defended the scale of global AI investment, saying she does not believe spending on the technology has become excessive. Instead, she sees AI creating new opportunities in areas such as healthcare, entrepreneurship and productivity.
Using India as an example, she said AI could help expand workforce participation, support small businesses and create new economic opportunities beyond large corporations.
She acknowledged that AI-driven disruption is inevitable but argued that the technology has the potential to create new industries and economic growth that can offset job displacement over time.
For the full interview, watch the accompanying video
Fraser added that companies should use AI not only to improve products and services but also to strengthen cybersecurity by identifying vulnerabilities and addressing them before they become major threats.
As Citi continues its transformation strategy globally, Fraser said the bank remains focused on improving returns while investing for long-term growth. She stressed that management would not sacrifice future opportunities in pursuit of short-term financial targets.
Catch all the latest updates from the stock market here
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