New RBI Governor Sanjay Malhotra's Five Recent Statements That Reflect Views On Trade, Tax, Economy

Revenue Secretary Sanjay Malhotra, named as the next Reserve Bank of India governor, is a career bureaucrat with over three decades of experience.

Malhotra has served in the Ministry of Finance as the financial services secretary from February–November 2022, and as the revenue secretary for the last two years.

Here is a look at the five recent statements of Malhotra that reflect his views on crucial subjects like economy, taxation and India's role in global trade.

Speaking at the Directorate of Revenue Intelligence's 67th foundation day ceremony on Dec. 4, Malhotra flagged the need to be cautious while issuing high-pitched tax demand notices during inspection of irregularities.

"We are here not only for revenue but for the whole economy of the country. If, in the process of garnering some revenue, we hurt the industry or economy, that's certainly not our intent. Revenue comes in only when there is some income. So, we have to be very cautious so that we do not in the process, as they say, kill the golden goose," he stated.

Speaking at the Global AEO Conference in New Delhi on Nov. 29, Malhotra said that India aims to become the world's most efficient and trusted trade hub. "We aim to set new benchmarks in trade facilitation and global connectivity."

"We actually generate billions and billions of bills of entry and shipping bills every year. To be able to do this without the help of technology is not possible... It is now our endeavour to be able to make all services at all ports and at all times, online and electronic," he added.

Ahead of the Interim Budget in February 2024 ahead of the general elections, Malhotra told news agency PTI in an interview that the existing tax structure for Indian corporates was "reasonable".

"The existing taxation of our country now for corporates at 22%, when compared to the economy of our size, is very, very reasonable. In light of all these, it was felt that this was the date that it was to sunset and it should sunset," he had said.

Malhotra touched upon the subject of high volume of futures and options trading in India, while speaking to the Hindustan Times following the release of fiscal 2025 budget in July. According to him, the high F&O trading was "not a concern" from a systemic point of view.

However, like lottery or other sin goods, "if some people are indulging in this excessively, then that is not good for them and for the country generally", he underlined.

Malhotra, while speaking to the Indian Express in July, said the decision taken by the government for a comprehensive review for the Income Tax Act was aimed at easing taxation.

"The primary purpose here is to simplify, make it easy to read, understand, make it easy to implement for the tax authorities, easy to comply for the taxpayers, tax practitioners, to reduce the compliance burden, reduce the litigation and the disputes," he said.