The Reserve Bank of India remains focused on its growth objective while prioritizing price stability, Governor Sanjay Malhotra confirmed in a statement on Monday. Speaking at a key banking conference, Malhotra emphasized that financial and price stability are pillars that support economic growth and reassured that the potential impact of tariff rates on Indian exports to the United States could be mitigated through negotiations.
Governor Sanjay Malhotra of the Reserve Bank of India reiterated the central bank's unwavering commitment to achieving both growth and stability in the economy. Malhotra emphasized that setting monetary policy is a delicate balance between addressing price stability and fostering economic growth. He highlighted the crucial role that financial stability and price stability play in supporting overall economic growth.
During his address at the annual banking conference, Malhotra also touched upon the issue of tariff rates on Indian goods exported to the United States. Despite the looming threat of a 50% tariff rate, he expressed optimism that negotiations could lead to a resolution that would have a minimal impact on the Indian economy. This assurance comes as a relief to many businesses and stakeholders who were concerned about the potential consequences of such tariffs.
The Governor's comments shed light on the Reserve Bank of India's strategic approach to managing the current economic challenges while keeping an eye on long-term growth objectives. By emphasizing the importance of maintaining both financial stability and price stability, Malhotra reiterates the central bank's commitment to fostering a conducive environment for sustainable economic growth.
