CHENNAI: Reserve Bank of India Governor Malhotra, while speaking at the FIBAC 2025 event on Monday, painted a cautious picture of the global economy, warning of rising risks from trade frictions, geopolitical conflicts, and persistent supply chain disruptions. He noted that the slowdown in advanced economies is adding to the uncertainty faced by emerging markets such as India.
Malhotra underlined the critical role of monetary policy in maintaining macroeconomic stability while also supporting growth. He pointed out that central banks today face the dual challenge of curbing inflationary pressures without choking recovery, a balance made more delicate by volatile commodity prices and uneven capital flows.
FIBAC 2025, the two-day annual banking conference, jointly organised by Federation of Indian Chambers of Commerce and Industry (FICCI) and Indian Banks’ Association (IBA) is held today and tomorrow (25-26, August) in Mumbai. The theme for FIBAC 2025 is 'Charting new Frontiers’.
Delivering the inaugural speech, the Governor also called on policymakers and industry leaders to address emerging challenges with urgency, while simultaneously seizing opportunities in areas such as digital finance, renewable energy, and regional trade partnerships. He stressed that resilience will require coordinated action across fiscal, monetary, and structural reforms.
Malhotra’s remarks come at a time when global headwinds are testing central banks worldwide. For India, the message underscores the need for prudence: while growth has remained relatively robust, it remains vulnerable to external shocks such as crude oil price swings, currency volatility, and tightening financial conditions abroad.
His emphasis on monetary policy’s stabilizing role suggests the RBI may continue to tread cautiously, prioritizing inflation management even as it looks for ways to support growth. The call to seize new opportunities also hints at a broader vision — positioning India to benefit from shifting global supply chains and growing investor interest in emerging markets.
In essence, Malhotra’s address at FIBAC reflects both caution and optimism: caution in acknowledging global risks, and optimism in highlighting India’s potential to navigate them with the right policy mix.