India needs to seize new growth opportunities amid rising global challenges: RBI chief

Mumbai: Reserve Bank of India (RBI) Governor, Sanjay Malhotra, on Monday emphasised the crucial role of monetary policy in maintaining stability and supporting growth as India is poised to become the third-largest economy amid the challenges posed by the global economic slowdown and geopolitical tensions.

Addressing the FIBAC 2025 annual conference organised by business chamber FICCI and Indian Banks Association, the RBI Governor underlined that amid the slowing down of advanced economies and supply chain disruptions, it was important to seize new opportunities that may arise.

“We are now at a critical juncture as we navigate a choppy global environment characterised by heightened trade uncertainty and persisting geopolitical tensions. We need to push the frontiers of growth. We must step up our efforts to address the emerging challenges, and at the same time, seize the opportunities that are coming our way,” the RBI Governor remarked.

He highlighted that the world economy is facing a challenging phase marked by persistent trade frictions, heightened uncertainty and geopolitical tensions.

On the US tariff hike that is poised to kick in, the RBI Governor said that there was still hope that negotiations will play out and the impact on the Indian economy will be negligible.

“We are hopeful that negotiations on tariffs will play out and there will be minimal impact on India’s economic growth,” he said.

The RBI Governor said that central banks today face the dual challenge of curbing inflationary pressures without choking recovery, a balance made more delicate by volatile commodity prices and uneven capital flows.

Malhotra said that the RBI will continue to conduct its monetary policy with the objective of price stability and economic growth. “We will continue to strengthen financial stability, this is our primary objective,” he remarked.

He also stated that India was in a comfortable position on the external front with ample foreign exchange reserves that are sufficient to cover 11 months of the country’s imports.

–IANS