What happened (RBI Governor’s remarks after the MPC meeting)
RBI Governor Sanjay Malhotra spoke after the Monetary Policy Committee (MPC) meeting and described India’s macroeconomic fundamentals as “very strong.” Malhotra argued that growth can remain resilient through repeated external disruptions without breaking the growth trend.
Malhotra described a West Asia-related shock as something to treat as an opportunity to enhance resilience. Malhotra stated that growth is resilient, headline inflation is rising, and underlying inflation pressures are muted. Malhotra also said monetary policy is aligned with core inflation, meaning policy focus follows the inflation component that better reflects persistent price pressures.
Background and earlier disruptions cited by RBI Governor Malhotra
RBI Governor Sanjay Malhotra attributed improved outcomes to the combined strength of India’s institutions, including the RBI. Malhotra listed multiple disruptions under which India “came out stronger,” including COVID-19, the Russia–Ukraine war, the Israel–West Bank conflict, U.S. tariffs, and the ongoing West Asia conflict.