Price stability has strengthened India's economy: RBI Governor

MUMBAI: Reserve Bank of India (RBI) Governor Sanjay Malhotra on Monday said that the central bank's focus on price stability has played a key role in strengthening India's macroeconomic fundamentals.

Speaking at ‘FIBAC 2025', organised jointly by FICCI and IBA, he added that while price stability remains the primary objective of monetary policy, growth has never been lost sight of.

“We will continue to conduct monetary policy with the primary objective of price stability, keeping in view the objective of growth,” Malhotra said, describing financial and price stability as essential for sustainable economic expansion.

The Governor stressed that India is at a critical juncture, navigating a volatile global environment while continuing to stand out as a resilient and hopeful economy.

He urged banks and corporates to work together to revive the “animal spirit” needed to trigger a fresh investment cycle.

“On the demand side, I would urge the industry to invest boldly and champion the entrepreneurial spirit that defines our nation,” he said.

Malhotra also outlined RBI's efforts to improve ease of doing business. He announced that the central bank is consolidating regulations across categories of regulated entities to create a more principle-based framework.

A new ‘Regulatory Review Cell' will be set up to examine all regulations every five to seven years, with a focus on efficiency, cost-benefit balance, and alignment with current market realities.