Mumbai: Reserve Bank of India (RBI) Governor Sanjay Malhotra on Monday said that India has not lost sight of its growth objective and assured of setting monetary policy with the primary objective of price stability, keeping in view the objective of growth. He further said the Indian economy is backed by “robust macroeconomic fundamentals and continues to be a symbol of resilience and hope”.
Financial stability and price stability do not inhibit growth but support it, Malhotra was quoted by Reuters when he was giving his inaugural address at the annual banking conference ‘FIBAC 2025’.
Commenting on the tariffs announcement by US President Donald Trump, the RBI governor said the 50% tariff rate on Indian goods exported to the United States is yet to become effective and there was still hope that talks between the two countries will yield some positive results.
‘India’s Growth Remains Strong Despite Global Challenges’
Meanwhile, Malhotra appealed to banks and corporates to come together and drive the “animal spirits” to create an investment cycle in the country to tackle the global economic challenges.
“I would like to emphasise that we might seem to be on opposite sides, with the regulated entities trying to accelerate growth and the regulators focussing on stability, but we actually have the same objectives. We are in the same team, we have the same shared vision of a Vikshit Bharat,” the RBI governor was quoted by PTI as saying.
Malhotra said he is looking forward to working together with the regulated entities to improve the efficiency and effectiveness of India’s financial intermediation to ensure that the due benefits reach the people.
“At the time when the balance sheets of the banks and the corporates are at their best, they should come together and drive the animal spirits to create an investment cycle, which is so important at this juncture,” he said.