India in goldilocks phase with 8% growth, low inflation: RBI Governor

In an exclusive interview with India Today, Reserve Bank of India (RBI) Governor Sanjay Malhotra described the Indian economy as being in a 'Goldilocks period' characterised by high GDP growth of 8 per cent and low inflation. Reflecting on his first year in office, Malhotra highlighted the central bank's decision to cut the policy rate by 125 basis points since February 2025 to 5.25 per cent, citing benign inflation and a neutral policy stance. He projects a robust 7.3 per cent GDP growth for the current fiscal year despite global headwinds like US tariffs and geopolitical tensions.

Addressing concerns about the rupee crossing 90 to the dollar, Malhotra asserted the RBI does not target a specific level but focusses on curbing undue volatility. He also noted improvements in the banking sector's asset quality and expressed confidence in sustaining growth momentum through consumption and private investment.