India’s Strong Core can Extend Goldilocks Ride
March 01, 2026
Reserve Bank of India (RBI) governor Sanjay Malhotra said corporates, banks, central and state governments and the private sector are in robust shape, evidence that the economy is “healthy and robust.” Growth is broad-based in the new-series GDP data and investment has picked up.
Synopsis
Reserve Bank of India (RBI) governor Sanjay Malhotra said corporates, banks, central and state governments and the private sector are in robust shape, evidence that the economy is “healthy and robust.” Growth is broad-based in the new-series GDP data and investment has picked up.
Reserve Bank of India (RBI) governor Sanjay Malhotra said corporates, banks, central and state governments and the private sector are in robust shape, evidence that the economy is “healthy and robust.” Growth is broad-based in the new-series GDP data and investment has picked up.
Malhotra said in an interview that the economy’s Goldilocks phase can be sustained and interest rates are likely to stay at current levels or go even lower as inflation looks benign. Economists expect a long pause after the policy rate was cut by a cumulative 125 bps to 5.25% between February and December last year, against the backdrop of January headline inflation at 2.75%, well below RBI’s target, and December quarter growth at 7.8% in new series.
The interview took place before the West Asian conflict began.
“Now, what are the risks? It will depend on the growth-inflation dynamics as they play out. We are still living in very uncertain times,” he said.
He dismissed concerns on rising currency in circulation, noting that “as an economy grows, demand for cash too increases.” He said funding will not constrain UPI expansion.
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Malhotra said there is scope to raise credit penetration and the regulator is open to more banks. He added that the Tata Sons application to surrender its upper-layer NBFC classification is “under examination.”
He said overseas inflows have tilted toward markets with AI opportunities and it isn’t reflective of India’s strong fundamentals.
(This story has not been edited by economictimes.com and is auto–generated from a syndicated feed we subscribe to.)
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Reserve Bank of India (RBI) governor Sanjay Malhotra said corporates, banks, central and state governments and the private sector are in robust shape, evidence that the economy is “healthy and robust.” Growth is broad-based in the new-series GDP data and investment has picked up.
Reserve Bank of India (RBI) governor Sanjay Malhotra said corporates, banks, central and state governments and the private sector are in robust shape, evidence that the economy is “healthy and robust.” Growth is broad-based in the new-series GDP data and investment has picked up.
Malhotra said in an interview that the economy’s Goldilocks phase can be sustained and interest rates are likely to stay at current levels or go even lower as inflation looks benign. Economists expect a long pause after the policy rate was cut by a cumulative 125 bps to 5.25% between February and December last year, against the backdrop of January headline inflation at 2.75%, well below RBI’s target, and December quarter growth at 7.8% in new series.
The interview took place before the West Asian conflict began.
“Now, what are the risks? It will depend on the growth-inflation dynamics as they play out. We are still living in very uncertain times,” he said.
He dismissed concerns on rising currency in circulation, noting that “as an economy grows, demand for cash too increases.” He said funding will not constrain UPI expansion.
Live Events
Malhotra said there is scope to raise credit penetration and the regulator is open to more banks. He added that the Tata Sons application to surrender its upper-layer NBFC classification is “under examination.”
He said overseas inflows have tilted toward markets with AI opportunities and it isn’t reflective of India’s strong fundamentals.
(This story has not been edited by economictimes.com and is auto–generated from a syndicated feed we subscribe to.)
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Why Maruti chose China’s BYD over Make in India for its first EV
Out, then in again: How AI put consulting back on IT’s hotlist
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Stock Radar: Laurus Labs stock showing signs of recovery after falling from January 2026 highs – time to buy?
These large- and mid-cap stocks can give more than 25% return in 1 year, according to analysts
1
2
3