RBI Governor Sanjay Malhotra on Wednesday said that India’s economy is expected to maintain strong growth momentum despite an uncertain and challenging global environment, supported by robust domestic consumption and steady investment activity. He emphasised that safeguarding financial stability remains a top priority for policymakers as the country navigates global volatility.
In his foreword to the latest Financial Stability Report, Malhotra said that maintaining a resilient and well-regulated financial system continues to be the central objective of the Reserve Bank of India. He noted that while financial stability is crucial, it must go hand in hand with encouraging innovation, supporting economic growth, protecting consumers and adopting a practical approach to regulation and supervision.
He underlined that the most important role of policymakers is to build a financial system that is strong enough to withstand shocks, efficient in delivering financial services and capable of fostering responsible innovation. According to him, such a framework ensures long-term sustainability and confidence in the financial ecosystem.
Malhotra added that India’s financial system remains resilient, backed by solid economic growth, moderate inflation, strong balance sheets of banks and corporates, adequate capital buffers and a series of prudent policy measures. These factors have helped the economy stay stable even as global conditions remain uncertain.
He acknowledged that near-term risks from external spillovers continue to exist but said that authorities are focused on strengthening safeguards to protect the economy from potential disruptions. The RBI, he said, remains committed to reinforcing financial stability while supporting growth in an increasingly complex global environment.
