RBI Governor hails India's economy, reaffirms ‘resilient growth’ amid global strains

NEW DELHI : The governor underscored that India’s macroeconomic fundamentals, carefully built over decades, have provided a shield of stability. From robust foreign exchange reserves and strong bank balance sheets to a narrowing current account deficit and easing inflation since February, the governor said the economy is “well settled into an equilibrium of resilient growth.”

He credited policymakers, regulators, and market participants with safeguarding the economy’s footing, drawing a sharp contrast between India’s resilience and the fragility visible in many advanced economies.

The RBI governor highlighted that growth drivers are broad-based: rising investment activity, buoyant services, and improved rural and urban demand are reinforcing economic momentum. Manufacturing and services recovery, coupled with strong domestic demand, continue to act as buffers against external shocks.

He emphasized the proactive role of both monetary and fiscal policy in maintaining balance. The RBI’s calibrated monetary stance alongside government measures is designed to ensure stability while supporting sustainable growth.

With foreign exchange reserves providing a strong cushion and the current account deficit kept under control, India is projected to maintain stable GDP growth in the near term. Inflation, according to Malhotra, is expected to gradually moderate, further supporting confidence in the country’s economic outlook.

“Despite all odds, the economy seems well settled into an equilibrium of resilient growth,” RBI governor said.