RBI Governor Sanjay Malhotra on India's "Goldilocks Economy," Rate Cut & GDP Growth

In an exclusive interview with India Today, Reserve Bank of India (RBI) Governor Sanjay Malhotra describes the Indian economy as being in a 'Goldilocks period' characterized by high growth and low inflation. Reflecting on his first year in office, Malhotra highlights the central bank's decision to cut the policy rate by 125 basis points since February 2025 to 5.25%, citing benign inflation and a neutral policy stance. He projects a robust 7.3% GDP growth for the current fiscal year despite global headwinds like US tariffs and geopolitical tensions. Addressing concerns about the rupee crossing 90 to the dollar, Malhotra asserts the RBI does not target a specific level but focuses on curbing undue volatility. He also notes improvements in the banking sector's asset quality and expresses confidence in sustaining growth momentum through consumption and private investment.