RBI Governor: India Can Withstand Global Headwinds
Reserve Bank of India Governor Sanjay Malhotra said on October 3, 2025, that India is well positioned to handle external pressures amid rising global uncertainties. He was speaking at the Economic Conclave in New Delhi, where he underlined the country’s resilience.
Strong Fundamentals as a Buffer
Malhotra highlighted India’s healthy foreign exchange reserves, low inflation levels, and a narrow current-account deficit as key factors that protect the economy from external shocks. He described India as “an anchor of stability in a volatile world.”
Tariff Pressures and Economic Outlook
He acknowledged the risks from the recent U.S. tariffs of up to 50 % on Indian goods, imposed in late August. While noting that these measures may hurt exports, he said India’s strong domestic demand and investments will help the economy withstand pressure.
Policy Stance and Flexibility
The RBI has kept its policy rate steady at 5.5 %, but Malhotra stressed that the central bank remains flexible. He said the RBI would take timely steps if global or domestic conditions required a shift in policy.
