RBI Governor Malhotra On Rupee, Market Volatility & India’s Path To Competitiveness

At an IMF event, RBI Governor Malhotra addressed the challenges faced by emerging economies amid global market volatility. He said the Indian rupee and equities are adjusting after their strong performance in 2024, emphasizing that market forces should determine currency levels. Since taking charge in December, Malhotra’s approach has signalled less direct intervention — though recent moves suggest tactical RBI actions. He also underlined the need for India to boost competitiveness, productivity, and attract durable capital inflows, as global growth remains below pre-pandemic levels. The governor’s comments highlight the RBI’s focus on maintaining balance between market stability and long-term structural reforms.