Reserve Bank of India (RBI) Governor Sanjay Malhotra (file photo) | Photocredit: Hemanshi Kamani
The Reserve Bank of India has not “lost” its growth motif, even if price stability remains its primary mandate, said Governor Sanjay Malhotra on Monday.
“The primary objective of monetary policy in terms of price stability has contributed considerably to the strength of India’s micro -fundaments,” said Malhotra during a banking sector event in Mumbai. “At the same time, the monetary policy did not lose sight of the growth objective.”
Malhotra’s comments come only two days before the US forces the extra 25% rate increase by President Donald Trump compared to Indian import, which would cost cumulative levies up to 50% – up to the highest of the products of a large economy – and could shave 0.6 to 0.8 percentage points on the annual growth of India, according to India, according to India, according to India, according to India, according to India, according to the annual growth growth, according to India, according to India, according to India Growth. estimates.
To dampen the tariff shock, the central government is investigating ways to strengthen the domestic economy. Prime Minister Narendra Modi announced earlier this month of plans to revise the complex goods and services tax, a step aimed at stimulating consumer spending.
RBI left the return percentage unchanged during the policy meeting in August, while policy makers tried to assess the impact of rate -related uncertainties on the second largest economy of Asia. Before that, the reserve Bank of India had lowered the bench market rate with 100 basic points since February.
However, benign inflation can give policy makers a reach to further illuminate in the coming months if growth is faltering. In July, the inflation percentage fell for the first time in eight years under the target band of the Central Bank.
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Published on August 25, 2025
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