MUMBAI. The Indian economy is poised for strong growth and continues to demonstrate remarkable resilience against a challenging global environment. Reserve Bank of India (RBI) Governor Sanjay Malhotra shared this optimistic outlook in the central bank’s December Bulletin. He noted that the domestic market is currently navigating a rare “Goldilocks period” characterised by high growth and benign inflation. The central bank remains proactive in meeting the economy’s productive requirements while ensuring long-term macroeconomic stability.
Achieving a Goldilocks Period for Indian Economy
The Governor highlighted a unique economic phenomenon occurring in the current fiscal year. Real GDP expanded by a robust 8.2 per cent in the second quarter. This growth received a boost from strong festive demand and the rationalization of GST rates. Simultaneously, headline inflation dropped to an unprecedented low of 0.3 per cent in October. This combination of 8 per cent growth and low inflation provides the perfect headroom for growth-supportive monetary policies.
Furthermore, the banking system has further consolidated its strength throughout 2025. The regulatory framework now offers better consumer protection and enhances the ease of doing business. Governor Malhotra expressed satisfaction with how the financial system refined its resilience over the past year. India enters the new year with renewed vigour to accelerate this progress.
Sustaining Momentum Amid Global Headwinds
Domestic factors remain the primary engine for future expansion. Healthy agricultural prospects and strong corporate balance sheets suggest that economic activity will stay high. The continued impact of GST reforms also facilitates smoother trade and revenue collection. The RBI Governor believes these structural strengths will shield India from external volatility and shifting global trade dynamics.
Additionally, the Governor emphasized the importance of continuing reform initiatives. Legal and digital refinements in the financial sector will further attract international investment. By maintaining a stable policy environment, the RBI ensures that the Indian economy poised for strong growth stays on its upward trajectory. The central bank will monitor global conditions closely but remains confident in India’s internal economic fundamentals.
The report concludes that India represents a beacon of stability in the global financial landscape. With disinflation happening faster than expected, the RBI can focus more sharply on supporting productive sectors. This strategic alignment between fiscal and monetary policy sets the stage for even higher milestones in the coming decade.
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