RBI Governor Sanjay Malhotra Highlights India's Economic Resilience Amid Global Challenges

RBI Governor Sanjay Malhotra has projected a strong growth trajectory for the Indian economy, driven by domestic consumption and investment, despite external challenges. In his remarks, he highlighted the importance of maintaining financial stability while fostering innovation and protecting consumers. Malhotra reassured that the financial system remains robust, with healthy balance sheets and prudent reforms in place. He acknowledged the near-term challenges posed by global factors but emphasized the commitment to safeguarding the economy against potential shocks. Read on to discover more about his insights on India's economic resilience.

By Narendra Chaudhary Dec 31, 2025, 18:08 IST

Indian Economy's Growth Outlook

New Delhi: The Indian economy is set to achieve significant growth, bolstered by robust domestic consumption and investment, despite facing a challenging global environment, stated RBI Governor Sanjay Malhotra on Wednesday.

In his introduction to the latest RBI Financial Stability Report, Malhotra emphasized, "Our guiding principle is to maintain financial stability and enhance the financial system."

He pointed out that financial regulators understand that stability is not the sole objective; fostering innovation, protecting consumers, and adopting a practical regulatory approach to enhance efficiency are equally vital.

"Policymakers' key role is to cultivate a financial system that is resilient to shocks, efficient in delivering services, and encourages responsible innovation," he remarked.

Malhotra affirmed that both the Indian economy and its financial system are strong and resilient, supported by solid growth, manageable inflation, healthy financial and non-financial firm balance sheets, substantial buffers, and prudent policy reforms.

"Despite external volatility, we anticipate high growth driven by domestic consumption and investment. However, we are aware of the immediate challenges posed by external factors and are committed to establishing robust safeguards to protect the economy and financial system from potential disruptions," he added.