Reserve Bank of India (RBI) governor Sanjay Malhotra, on October 3, expressed confidence that India\u2019s economy has the capacity to sustain a growth trajectory of 7\u20138 percent in the coming years, even as global markets face risks of correction and uncertainty.<\/p>\n
Malhotra said India\u2019s recent growth performance gives confidence that the economy can continue on a 7\u20138 percent path. \u201cIndia’s past years\u2019 growth gives us the confidence that India can grow at 7\u20138 percent,\u201d he stated. He added that while the central bank\u2019s primary focus remains price stability, it also keeps growth considerations in mind.<\/p>\n
The central bank recently revised its gross domestic product (GDP) growth forecast for FY26 upward to 6.8 percent, underscoring optimism about India\u2019s economic resilience despite global headwinds.<\/p>\n
The governor reiterated the central bank\u2019s focus on price stability within its current inflation-targeting framework. The target is set at 4 percent, with a tolerance band of plus or minus 2 percent. This framework, reviewed every five years, remains central to the RBI\u2019s monetary policy strategy.<\/p>\n
Malhotra highlighted that India\u2019s inflation trajectory has faced significant challenges in recent years. \u201cThe last five years were defined by supply chain shocks that have left scars, with Covid, the Russia-Ukraine conflicts. These were unprecedented,\u201d he said. He explained that global commodity spikes and adverse weather patterns pushed inflation above 4 percent in India, driven largely by food and energy prices.<\/p>\n
Also Read: Perplexity AI Makes Comet Browser Free, Aims at Google Chrome<\/a><\/em><\/p>\n Reflecting on these challenges, the RBI governor acknowledged the limits of monetary policy during supply-driven inflation shocks. \u201cMonetary policy is ineffective to deal with supply-side inflation,\u201d he observed.<\/p>\n He added that one of the key learnings for the RBI has been the importance of having clearly defined exit policies for both supply and demand side interventions during crises. By February 2025, inflation had returned to within the 4 percent target range, he said, which validated the central bank\u2019s calibrated approach.<\/p>\n Malhotra also spoke on the institutional framework governing the RBI. He said India has managed to strike a balance between ensuring the independence of the central bank and maintaining accountability.<\/p>\n \u201cIndia has done very well in giving the Reserve Bank the independence where it is required, but with accountability,\u201d Malhotra said. This, he noted, has helped the institution navigate challenges while keeping credibility intact.<\/p>\n Turning to global developments, Malhotra acknowledged that the broader economic environment continues to remain uncertain. \u201cDespite uncertainties, US tariffs, global growth has been resilient. It needs to be seen how it unfolds,\u201d he said.<\/p>\n He warned that fiscal stress is widespread across countries. \u201cFiscally, every country is stressed, not apparent how it could be normalised. Lower global growth is a risk for all economies,\u201d Malhotra added.<\/p>\n The governor further noted that high debt levels in advanced economies are a concern for global central banks.<\/p>\n Despite the risks in the global environment, Malhotra highlighted India\u2019s relative strength. \u201cIndia\u2019s macroeconomic fundamentals are strong, low inflation, narrow CAD, strong balance sheets of corporates, high forex reserves showing financial and policy certainty,\u201d he said.<\/p>\n He added that India continues to be perceived as an anchor of stability in a volatile global landscape.<\/p>\n Malhotra flagged potential risks in global equity markets, particularly those driven by technology stocks. \u201cGlobal equity markets are led by technology stocks, correction might be in the offing,\u201d he cautioned.<\/p>\n He also pointed out that inflation across economies remains range-bound, though still at the higher end of the range.<\/p>\n The governor also highlighted gold prices as a signal of global investor sentiment. \u201cGold prices are now showing movement, acting as a barometer of global uncertainty,\u201d he said.<\/p>\n RBI Governor Sanjay Malhotra\u2019s remarks highlighted both the confidence in India\u2019s domestic growth trajectory and the caution required in navigating global uncertainties. While India\u2019s strong macroeconomic fundamentals, stable inflation outlook, and rising growth estimates provide resilience, the risks of global market corrections, elevated debt levels, and energy-driven pressures remain in focus. His message underscored the RBI\u2019s twin priorities of maintaining price stability and supporting sustainable growth, even as global conditions continue to pose challenges.<\/p>\n FII DII Data<\/a> Reserve Bank of India (RBI) governor Sanjay Malhotra, on October 3, expressed confidence that India\u2019s economy has the capacity to sustain a growth trajectory of 7\u20138 percent in the coming years, even as global markets face risks of correction and uncertainty. India\u2019s Growth Outlook Malhotra said India\u2019s recent growth performance gives confidence that the economy […]<\/p>\n","protected":false},"author":6,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1370],"tags":[],"ppma_author":[1383],"class_list":{"0":"post-15012","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-finance-economy-blog"}," _eael_post_view_count":0,"authors":[{"term_id":1383,"user_id":6,"is_guest":0,"slug":"pradeep","display_name":"Pradeep Sangatramani","avatar_url":{"url":"https:\/\/trending.niftytrader.in\/wp-content\/uploads\/2025\/09\/Pradeep-Sangatramni.jpeg","url2x":"https:\/\/trending.niftytrader.in\/wp-content\/uploads\/2025\/09\/Pradeep-Sangatramni.jpeg"},"0":null,"1":"","2":"","3":"","4":"","5":"","6":"","7":""}],"_links":{"self":[{"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/posts\/15012","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/comments?post=15012"}],"version-history":[{"count":1,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/posts\/15012\/revisions"}],"predecessor-version":[{"id":15013,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/posts\/15012\/revisions\/15013"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/media\/14916"}],"wp:attachment":[{"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/media?parent=15012"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/categories?post=15012"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/tags?post=15012"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/ppma_author?post=15012"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}Policy Tools and Lessons<\/h2>\n
RBI\u2019s Autonomy and Accountability<\/h2>\n
Global Uncertainties and Risks<\/h3>\n
India\u2019s Macroeconomic Strengths<\/h3>\n
Concerns Over Market Corrections<\/h3>\n
Gold as a Barometer<\/h3>\n
Conclusion<\/h3>\n
Click here to explore:<\/h3>\n
\nIPO<\/a>
\nBSE Sensex<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"