Sanjay Malhotra Says India’s Medium-Term Economic Fundamentals Stay Strong and Resilient

Sanjay Malhotra Expresses Confidence in India’s Medium-Term Economic Strength

RBI Signals Stability in Economic Outlook

Reserve Bank of India (RBI) Governor Sanjay Malhotra has reaffirmed confidence in the country’s macroeconomic trajectory, stating that India’s medium-term fundamentals remain solid and resilient. His remarks come amid global financial uncertainty, underscoring the central bank’s belief that the domestic economy is well-positioned to sustain growth.

The governor emphasised that key economic indicators continue to support a stable outlook, even as international markets experience volatility.

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Policy Rates Held Steady to Support Growth

At the latest meeting of the Monetary Policy Committee (MPC), the RBI decided to keep the benchmark policy rate unchanged. The decision reflects a balanced approach — maintaining growth momentum while ensuring inflation remains under control.

Malhotra noted that the current interest rate setting is appropriate given the prevailing growth-inflation dynamics. By avoiding abrupt policy shifts, the RBI aims to preserve macroeconomic stability and maintain investor confidence.

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Strong Domestic Demand and External Stability

The RBI chief highlighted that India’s macro fundamentals — including healthy domestic demand, manageable inflation, and a stable external sector — continue to underpin economic resilience.

Robust consumer spending, steady investment activity, and improving trade engagement have contributed to this positive outlook. These factors, according to the governor, provide a strong foundation for sustained medium-term growth.

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Inflation Within Comfort Zone

Inflation, a key focus area for the central bank, remains within the RBI’s tolerance band. This allows policymakers to prioritise growth support without compromising price stability.

Malhotra stressed that anchoring inflation expectations remains critical, but current trends indicate that the economy is navigating price pressures effectively.

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Global Risks Remain but Are Manageable

Acknowledging external headwinds such as geopolitical tensions and global market volatility, the governor said India’s economic buffers are strong enough to withstand external shocks.

He pointed to prudent fiscal management and credible monetary policy frameworks as key strengths that shield the economy from global disruptions.

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Long-Term Growth Path Remains Intact

Overall, Malhotra conveyed optimism about India’s medium-term prospects. With stable macroeconomic fundamentals and a calibrated policy stance, the country is expected to maintain steady growth momentum.

The RBI’s message is clear: while global challenges persist, India’s economic foundations remain healthy, robust, and capable of supporting sustainable expansion in the years ahead.