Indian economy 'well settled' amid global volatility: RBI Governor Sanjay Malhotra
&imwidth=600&imheight=450&format=webp&quality=medium "Indian economy 'well settled' amid global volatility: RBI Governor Sanjay Malhotra")
RBI Governor Sanjay Malhotra Photograph: (ANI)
Sanjay Malhotra emphasised that India's strong economic position is the result of adopting the right global practices at the right time.
Reserve Bank of India (RBI) Governor Sanjay Malhotra on Friday said that the Indian economy is "well settled" and makes the nation "stand out" in a "volatile world." Malhotra was speaking at an event in New Delhi, where he highlighted India's growth despite global headwinds. He also credited the country's economic stability to the government's farsighted and proactive approach.
Speaking at the Kautilya Economic Conclave, he said, "Despite changes in government, the continuity of reforms momentum, and the adoption of global best frameworks... our domestic needs and national priorities, it is the combined efforts of the governments, policymakers, regulators, and regulated entities."
Malhotra emphasised that India's strong economic position is the result of adopting the right global practices at the right time. "All in all, despite recent odds, the economy seems well settled into an equilibrium of resilient growth, which is quite a feat for a large amount of market and makes India stand out as an anchor of stability in a volatile world," he said.
The RBI Governor further noted, “India's macroeconomic fundamentals have remained very strong, built assiduously over the decades. We have strong Forex reserves, low inflation since February, a narrow current account deficit, a very credible fiscal consolidation path, very strong balance sheets of our banks and corporates.”
Highlighting the government's emphasis on local development, Malhotra also praised the continuity of reform efforts. He noted that the global economy has shown surprising resilience in the face of high US import tariffs, trade restrictions, and ongoing uncertainties - a positive sign for global stability.
"Growth has been upbeat, defined projections. Even though uncertainty has become a pervasive element of contemporary discourse, its tangible effects on the real economy have thus far been muted. We have more to see as to how it unfolds," he added.
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However, he acknowledged that some economies might suffer permanent damage from the current trade policy environment and associated restrictions.
"Fiscally, almost every country today is quite stretched. It is not apparent how the situation could be normalized, especially if the world goes into a phase of lower economic growth. This is a risk for all of us, particularly when it is not accompanied by high inflation," he said.
Malhotra also reflected on the recent surge in gold prices, comparing the trend to past fluctuations in oil prices. "Gold prices now are showing the kind of movement that oil used to, that is acting as a barometer of global uncertainty. Overall, despite heightened uncertainty, global financial conditions have recently eased," he concluded.