RBI Governor: India emerges strong from disruptions, has very strong macroeconomic fundamentals

The Story in Brief

Reserve Bank of India Governor Sanjay Malhotra said India’s macroeconomic fundamentals are “very strong” and that the country has emerged stronger after past disruptions. Speaking at a post-Monetary Policy Committee meeting press conference in Mumbai, he said the present episode, including the West Asia conflict, is being treated as an opportunity to enhance resilience. He noted that growth is resilient, headline inflation is rising while underlying inflation pressures are muted, and the RBI is aligning with core inflation.

Answering a question from The Hindu, Malhotra listed shocks the economy has faced – Covid, the Russia-Ukraine war, the Israel-West Bank conflict, U.S. tariffs and the ongoing West Asia conflict – and said India “has come out stronger.” He said confidence comes from how the economy, the RBI and other institutions have managed these challenges, adding that banks and corporates have healthy balance sheets, the government continues to focus on reforms and fiscal consolidation, and that policy frameworks and institutions are robust. “There is nothing to worry,” he stressed.

The Indian Opinion

The governor’s remarks emphasise resilience and institutional strength, a reassuring line often used by central banks. These comments are the RBI’s assessment at a post‑MPC press conference and reflect the view that banks and corporates have healthy balance sheets and that the government is focused on reforms and fiscal consolidation. Readers should note this is an official perspective based on the governor’s judgement; it is not independent verification of how future global developments will affect India. Statements about rising headline inflation but muted underlying pressures highlight an area that merits continued monitoring rather than offering certainty.

Original article: India emerges strong from each disruption, has “very strong” macroeconomic fundamentals: RBI Governor (www.thehindu.com)

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