Daijiworld Media Network - Mumbai

Mumbai, Aug 25: In a forward-looking address at the FIBAC 2025 conference, Reserve Bank of India Governor Sanjay Malhotra underscored the pivotal role of monetary policy in navigating a turbulent global landscape. As India steadily moves toward becoming the world's third-largest economy, Malhotra emphasized the importance of maintaining macroeconomic stability while actively pursuing growth.

Speaking at the event jointly hosted by FICCI and the Indian Banks' Association, the Governor painted a candid picture of the global economy — marked by weakening demand in advanced markets, supply chain disruptions, and escalating geopolitical strains. He called for a proactive approach to capturing emerging opportunities in the midst of these global challenges.

Malhotra highlighted that the RBI remains committed to ensuring price stability without compromising growth, even as central banks worldwide grapple with inflationary pressures and volatile financial markets. He acknowledged the complexity of balancing inflation control with economic recovery, particularly in the face of fluctuating commodity prices and erratic capital flows.

Commenting on the anticipated US tariff hike, Malhotra expressed optimism that ongoing negotiations could mitigate any major fallout for India. He reassured that the Indian economy is well-positioned to absorb potential shocks, pointing to the country’s healthy foreign exchange reserves — currently sufficient to cover 11 months of imports — as a key buffer.

The RBI’s top priority, Malhotra concluded, remains the strengthening of financial stability and the sustained pursuit of economic resilience.