New Delhi [India], October 3 : Reserve Bank of India (RBI) Governor Sanjay Malhotra on Friday said that despite recent odds, the Indian economy seems "well settled into an equilibrium of resilient growth."
Speaking at the Kautilya Economic Conclave in the national capital, he said India's macroeconomic resilience and policy consistency have placed it in a strong position.
Talking about the economic resilience of the economy, he said, "Despite changes in government, continuity in reforms momentum, adoption of global best frameworks.... our domestic needs and national priorities, it is the combined efforts of the governments, policy makers, regulators, and regulated entities. 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."
RBI Governor said, "India's macroeconomic fundamentals have remained very strong, built asiduously 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."
Malhotra credited this performance to the government's proactive approach to ensuring stability across multiple dimensions. He further emphasised that continuity in reform efforts and adaptation of global best practices to suit local priorities have been key to India's economic positioning.
The RBI Governor stated that, despite higher US import tariffs, trade restrictions, and uncertainties, the global economy has remained surprisingly resilient so far.
"Growth has been upbeat defined projections. Even though uncertainty has become a pervasive element of a contemporary discourse, its tangible effects on real economy have thus far been muted. We have more to see as to how it unfolds," he added.
Current trade policy environment and restrictions could damage, perhaps permanently growth in some of the economies, he said.
"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 economy growth. This is a risk for all of us, particularly when it is not accompanied by high inflation," he added.
Highlighting the recent surge in the gold prices, Malhotra said, "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 now recently have eased."
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