Reserve Bank of India (RBI) Governor Sanjay Malhotra on Monday stressed the critical role of monetary policy in maintaining stability and supporting growth as India moves towards becoming the world’s third-largest economy.
Speaking at the FIBAC 2025 annual conference, organised by FICCI and the Indian Banks’ Association, Malhotra highlighted the need to seize emerging opportunities despite the global economic slowdown and geopolitical challenges.
“We are now at a critical juncture as we navigate a choppy global environment characterised by heightened trade uncertainty and persisting geopolitical tensions. We need to push the frontiers of growth. We must step up our efforts to address the emerging challenges, and at the same time, seize the opportunities that are coming our way,” said the RBI governor.
He highlighted that the world economy is facing a challenging phase marked by persistent trade frictions, heightened uncertainty and geopolitical tensions.
On the impending US tariff hike, the RBI Governor said, “We are hopeful that negotiations on tariffs will play out and there will be minimal impact on India’s economic growth.”
The RBI governor underlined that central banks worldwide face the delicate task of containing inflationary pressures without stalling recovery, a challenge compounded by volatile commodity prices and uneven capital flows.
He reaffirmed that the RBI remains committed to conducting monetary policy with the twin objectives of ensuring price stability and sustaining growth.
He further noted that India’s external position is secure, backed by ample foreign exchange reserves sufficient to cover 11 months of imports. “We will continue to strengthen financial stability; this is our primary objective,” Malhotra said.
(With inputs from IANS)
