Reserve Bank of India Governor Sanjay Malhotra’s View on India’s Economy

• Reserve Bank of India Governor Sanjay Malhotra praised India’s robust growth rate of 6.5%, compared to the 6.4% and 3% of the world’s growth rates, as per the IMF.

• He noted that India contributes about 18% more to global growth than the US, which would be around 11% or more.

• Despite uncertainties, Malhotra stated that the RBI had reduced the repo rate by 100 basis points and will continue to take necessary measures to facilitate good growth while maintaining price stability.

• He dismissed the impact of external factors like the tariff war on inflation, stating that India’s dependence on external factors is less and the impact on inflation will be limited.

• Malhotra clarified that UPI users will not have to pay for transactions to banks as the government is subsidizing the cost to promote digital payments.