Reserve Bank of India (RBI) Governor Sanjay Malhotra has reaffirmed the central bank's primary objective is maintaining price stability with inflation targeting while supporting long-term economic growth.
Speaking at the NDTV World Summit 2026, Malhotra said India's strong macroeconomic fundamentals continue to support economic activity, with high-frequency indicators pointing to resilient growth across sectors.
“Inflation targeting remains a priority, along with growth,” Malhotra said, reiterating the RBI's commitment to maintaining price stability while supporting the economy.
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He pointed to indicators such as cement and steel sales, credit growth, tax collections and automobile sales as evidence that economic momentum remains intact. According to the RBI governor, growth is broad-based, with activity holding up across several segments of the economy.
Malhotra also said inflation remains within the RBI's tolerance band, although supply-side pressures, particularly from food and fuel, continue to pose challenges to the inflation outlook.
The governor referred to an average inflation projection of 5.1% for the current year, attributing the outlook to supply-side factors. The figure should be verified against the original interview before publication.
On the rupee, Malhotra said the central bank is not targeting any particular exchange-rate level. Instead, its focus is on ensuring orderly conditions in the foreign exchange market, signalling that the RBI's approach is aimed at managing volatility rather than defending a specific currency value.
The governor acknowledged that while domestic demand dynamics remain central to India's monetary policy decisions, persistent external factors will also influence the economic outlook.
The comments come amid an evolving global economic environment, where geopolitical developments, commodity prices and external financial conditions can affect both inflation and growth in India.
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Malhotra reiterated that the RBI remains steadfast in its commitment to achieving price stability, underlining its importance for the economy over the long term.
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