The RBI Governor, Sanjay Malhotra, boasted of India’s impressive post-pandemic recovery on the FIBAC Conference stage. He referred to India’s growth as the third-largest economy from GDP momentum and growth resilience. The Governor spoke about RBI’s dual mandate of Price Stability & Growth.
RBI Governor Sanjay Malhotra delivered his remarks at the FIBAC 2025 Annual Banking Conference in Mumbai. It is a key platform for policymakers, regulators, and bankers. The governor mentioned India is on a trajectory to become the world’s third-largest economy, built on a strong post-pandemic recovery and resilient macro fundamentals.
“We stand at a crucial crossroads, facing a turbulent global landscape marked by escalating trade uncertainties and ongoing geopolitical frictions. To move forward, we must expand the horizons of growth, intensify our efforts to tackle emerging challenges, and simultaneously harness the opportunities that lie ahead, ” said Governor Malhotra.
India is expected to become the third-largest economy in the coming years. Governor emphasises that Macroeconomic resilience must be leveraged to accelerate growth cycles rather than being complacent.
Malhotra said RBI will adjust rates, liquidity tools, or remain neutral depending on incoming data. For the first time in 8 years, inflation has fallen below the 4% target. RBI reduced repo by 100 basis points, signalling growth support. RBI insists growth is not sacrificed for stability, and with liquidity support and rate cuts, the aim is to revive credit flows to businesses and consumers.
The US under Trump proposes up to 50% tariffs on Indian exports. Textile & Apparel, Gems & Jewellery, Seafood, etc, are some sectors at risk. The Governor stated on the issue that Negotiations are ongoing. The impact may be minimal if diplomacy succeeds. He also added that “45% of exports will remain outside the tariff net”.
He appealed to Banks and Corporations to come together to revive investment. Corporate and banking balance sheets are stronger than a decade ago. India’s savings-investment gap is narrowing, creating room for capex revival.
“India’s reserve covers 11 months of imports, which is a shield against currency volatility. RBI has injected liquidity into bond markets, credit flow channels, and the banking system. No signs of banking stress, unlike some developed economies struggling with regional banks. Credit growth is healthy,” assured Malhotra.
RBI retains tools to cut, hike, or pause as needed. India’s central bank is proactive, not reactive, Malhotra’s message to the market.
