RBI Governor on India's Growth and Global Challenges

Thu, 23 Apr 2026 01:45:32 +0000
Banking

RBI Governor Sanjay Malhotra delivered an address at Princeton University on April 18, 2026, outlining India's economic growth trajectory and the Reserve Bank of India's role in maintaining price stability and navigating global challenges. India grew at an average of 6.1% annually over the last decade, outpacing global growth of 3.2%, China's 5.6%, and Indonesia's 4.2%. The Governor discussed the Flexible Inflation Targeting framework adopted in 2016, which targets 4% inflation with a 2% tolerance band, noting that average headline inflation dropped to 4.7% under FIT versus 7.4% prior to its adoption. Key monetary policy principles include prioritising robustness over optimality, applying Brainard's principle of attenuation, anchoring inflation expectations, maintaining transparency, and providing clear communication.