RBI Governor Sanjay Malhotra says India must push 'frontiers of growth' amid choppy global environment

Reserve Bank of India (RBI) Governor Malhotra on Monday said the world economy is facing a challenging phase marked by persistent trade frictions, heightened uncertainty and geopolitical tensions.

Speaking at the FIBAC 2025- 'Charting new frontiers' event, Malhotra stressed the importance of monetary policy in maintaining stability while supporting growth as India is set to become the third largest economy.

“We are now at a critical juncture as we navigate a choppy global environment characterised by heightened trade uncertainty and persisting geopolitical tensions. We need to push the frontiers of growth. We must step up our efforts to address the emerging challenges, and at the same time, seize the opportunities that are coming our way,” Malhotra said.


The Governor’s remarks come at a time when global markets are under pressure from slowing growth in advanced economies, prolonged conflicts in key regions, and supply chain disruptions.

The Governor said India’s economic progress must build on the legacy of its freedom fighters. “Generations of freedom fighters gave us India, a Swatantra Bharat, we need to now work for a Samriddh Bharat, a prosperous India,” he said.

On external risks, Malhotra referred to the trade tariffs proposed by U.S. President Donald Trump, saying, “The 50% tariff rates on Indian goods exported to the United States has not yet become effective and there was still hope that negotiations will play out and the impact on the economy will be negligible.”

Calling on industry leaders to take advantage of stronger balance sheets, Malhotra said, “At the time when the balance sheets of the banks and the corporates are at their best, they should come together and drive the animal spirits to create an investment cycle, which is so important at this juncture.”

He said the RBI was examining measures to expand bank credit, including towards sunrise sectors, while reiterating that monetary policy would continue to focus on anchoring inflation expectations and sustaining growth. “The Reserve Bank will continue to conduct monetary policy with the primary objective of price stability, keeping in view the objective of growth,” he said.

Malhotra also addressed the evolving role of regulation, and said, “I would like to emphasise that we might seem to be on opposite sides, with the regulated entities trying to accelerate growth and the regulators focussing on stability, but we actually have the same objectives. We are in the same team, we have the same shared vision of a Vikshit Bharat.”

He added that India’s economy remains resilient with strong macroeconomic fundamentals. “The Indian economy today is characterised by robust macroeconomic fundamentals and continues to be a symbol of resilience and hope,” he said.

The Governor also emphasised the role of technology in financial intermediation. “The central banks will continue to embrace technology, including AI and ML, and we expect all regulated entities to invest in these technologies for their own benefit and for the benefit of their customers,” he said.