RBI Governor Sees Strong Domestic Fundamentals, Flags Global Economic Risks

India shows resilience amid global tensions, as said by the RBI governor Sanjay Malhoyra. While speaking at the 25th FIMMDA-PDAI Annual Conference in Amsterdam, he said that the financial markets in India have shown exceptional resilience in the face of global uncertainty, but the next stage of development will be contingent upon increasing liquidity, expanding participation and improving market infrastructure.

“As a result, we have documented an average growth of 8.2% between 2021 and 2025. It is predicted that the economy will have expanded by 7.6% in 2025-26. We anticipate 6.9% growth in 2026-27,” he stated.

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“We will continue to deepen financial markets, widen participation and further strengthen institutional frameworks. We shall keep working towards fairness, transparency, ethical behavior, consumer protection and efficiency. In this endeavor, we will keep analyzing and addressing the changing demands of the industry,” he said.

RBI governor on AI and Public Debt:

Malhotra also highlighted artificial intelligence as a major source of uncertainty, pointing out that although it promises increased productivity, worries remain about the practicality of some business models, the rate and scope of efficiency gains and possible employment implications.

The governor cautioned that high levels of public debt in major economies remain a worry because ongoing fiscal growth has prevented a return to post pandemic consolidation trajectories. Growing geopolitical instability, according to him, is also contributing to increased defense spending, which might have serious implications for long-term fiscal stability.