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Achievements Of Indian Economy ‘Undoubtedly Creditable And Widely Recognised’, Says RBI Governor
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RBI Governor Sanjay Malhotra says India rebounded strongly after the pandemic, recording a compound annual growth rate (CAGR) of nearly 8% over the past four years.
RBI Governor Sanjay Malhotra. (File Photo)
Reserve Bank of India (RBI) Governor Sanjay Malhotra on Monday praised the resilience of the Indian economy, saying its achievements in recent years are “undoubtedly very creditable and widely recognised”, despite facing unprecedented challenges.
Speaking at the annual FIBAC conference, jointly organised by FICCI and the Indian Banks’ Association (IBA) under the theme ‘Charting New Frontiers’, Malhotra said the economy has expanded significantly and remains a symbol of “resilience and hope”.
He highlighted that India rebounded strongly after the pandemic, recording a compound annual growth rate (CAGR) of nearly 8% over the past four years. The International Monetary Fund, he noted, projects India to remain among the world’s fastest-growing major economies.
“We are all set and projected to be the third largest economy in the coming years,” he added.
On inflation, the Governor observed that the average rate has been much lower in the last decade, particularly after adopting the inflation-targeting framework, averaging 4.9% per annum.
He emphasised the stability of the external sector, pointing out that the current account deficit stood at just 0.6% of GDP last year, supported by robust service exports and record inward remittances, making India the top global recipient. Foreign exchange reserves of $695 billion cover around 11 months of merchandise imports.
Malhotra attributed these strong fundamentals to a mix of prudent fiscal and monetary policies, structural reforms, major investments in infrastructure, better governance, and gains in productivity and competitiveness.
On regulation, he said the RBI aims to strike a balance: “Regulations provide the necessary friction to promote financial stability and safeguard depositors’ money. However, excessive regulation could impede growth. The art of regulation-making lies in finding the right balance between safety and growth, the right amount of friction, in other words. Pursuit of this balance or optimal regulation has always been our constant endeavour in the RBI.”
On US Tariffs
The RBI governor also said the central bank will step in with additional policy measures if the recently imposed 50% US tariffs become effective this week.
“We have provided ample liquidity to the banking sector and whatever else is required to support the growth of the economy and including those of sectors which are impacted more. If it so happens, we will not be found wanting in our job,” said Malhotra.
He emphasised that while anchoring inflation has been a key priority, the central bank has “not lost sight of growth amid uncertainties”.
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Greggs has delayed the appointment of incoming board director Robert Moorhead due to a review into a major accounting error at his previous firm, WH Smith.
The high street bakery chain said Mr Moorhead – the former finance chief at WH Smith – had asked to delay his appointment until a review by Deloitte into the blunder at WH Smith is completed.
He had been due to start at Greggs on October 1 as an independent non-executive director and chair of the audit committee.
Mr Moorhead left WH Smith in 2024 after more than 20 years at the chain.
The delay to his appointment comes after WH Smith saw nearly £600 million wiped off its stock market value last week when it revealed a review of its finances had discovered trading profits in North America had been overstated by about £30 million.
It warned that annual profits would be lower than expected as a result, sending shares down by more than 40% at one stage during the day.
WH Smith said it had found an issue in how it calculated the amount of supplier income it received – leading it to be recognised too early.
It means the group is now expecting a trading profit for the US of about £25 million for the year to August – a cut from the previous £55 million forecast.
As a result, the company lowered its outlook for annual pre-tax profits to around £110 million.
Greggs said Kate Ferry will remain as a non-executive director and will continue as chair of the audit committee in the interim.
Pritti MistryBusiness reporter, BBC News
FordThe first electric vehicles (EV) eligible for the £3,750 discount under the government’s grant scheme have been announced.
The Department for Transport confirmed Ford’s Puma Gen-E or e-Tourneo Courier would be discounted as part of plans to encourage drivers to move away from petrol and diesel vehicles.
Under the grant scheme, the discount applies to eligible car models costing up to £37,000, with the most environmentally friendly ones seeing the biggest reductions. Another 26 models have been cleared for discounts of £1,500.
Carmakers can apply for models to be eligible for grants, which are then automatically applied at the point of sale.
More vehicles are expected to be approved in the coming weeks and the DfT said the policy would bring down prices to “closely match their petrol and diesel counterparts”.
The government has pledged to ban the sale of new fully petrol or diesel cars from 2030.
But many drivers cite upfront costs as a key barrier to buying an EV and some have told the BBC that the UK needs more charging points.
According to Ford’s website, the recommended retail price (RRP) for a new Puma Gen-E starts from £29,905 while a petrol equivalent is upward of £26,060. With the reduction applied, buyers would be looking in the region of £26,155 for the EV version.
The grants to lower the cost of EVs will be funded through the £650m scheme, and will be available for three years.
There are around 1.3 million electric cars on Britain’s roads but currently only around 82,000 public charging points.
Full list of EVs eligible for the £1,500 discount
- Citroën ë-C3 and Citroën ë-C3 Aircross
- Citroën ë-C4 and Citroën ë-C4 X
- Citroën ë-C5 Aircross
- Citroën ë-Berlingo
- Cupra Born
- DS DS3
- DS N°4
- Nissan Ariya
- Nissan Micra
- Peugeot E-208
- Peugeot E-2008
- Peugeot E-308
- Peugeot E-408
- Peugeot E-Rifter
- Renault 4
- Renault 5
- Renault Alpine A290
- Renault Megane
- Renault Scenic
- Vauxhall Astra Electric
- Vauxhall Combo Life Electric
- Vauxhall Corsa Electric
- Vauxhall Frontera Electric
- Vauxhall Grandland Electric
- Vauxhall Mokka Electric
- Volkswagen ID.3
The up-front cost of EVs is higher on average than for petrol cars.
According to Autotrader, the average price of a new battery electric car was £49,790 in June 2025, based on manufacturers’ recommended prices for 148 models.
The equivalent for a petrol car was £34,225, but the average covers a broad range of prices.
Transport Secretary Heidi Alexander said the grant scheme was making it “easier and cheaper for families to make the switch to electric”.
Edmund King, president of the AA, said drivers “frequently tell us that the upfront costs of new EVs are a stumbling block to making the switch to electric”.
“It is great to see some of these more substantial £3,750 discounts coming online because for some drivers this might just bridge the financial gap to make these cars affordable.”
new video loaded: How Trump Could Gain Control of the Fed
By Ben Casselman, Melanie Bencosme, June Kim, Gabriel Blanco and Jon Hazell•
President Trump’s attempt to fire Lisa Cook has laid bare the erosion of the Federal Reserve’s independence, which could lead to economic consequences for Americans, The New York Times’s chief economics correspondent explains.
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