RBI Gooverner urges banks and companies to start a new investment cycle

On Monday, the Indian Reserve Bank (RBI) urged the banks and companies to seize the public budget, the stable macroeconomic environment, and strong local demand. He said: “While banks and companies enjoy the strongest budgets within decades, they must meet and lead animal lives to stir a new investment cycle,” speaking at the annual Fibac conference organized by the Indian Grades Union from trade and expected materials, and climbing the expected association from limited trade materials. Outside the customs tariff system. While sectors such as textiles, car components and bloody mushrooms may face some pressure if the definitions continue, the reserve bank has confirmed that appropriate political support, including liquidity measures, will be extended wherever need.

In spite of the global challenges ranging from supply chain disorders to inflationary shocks and geopolitical tensions, India’s economy was flexible. He said: “India is one of the fastest growing major economies, as it has recorded 8 % annually in the past four years. We are also one of the fastest major economies in the world that is expected to be the third largest economy in the coming years.”

He also talked about relieving inflation. In July, inflation from the title fell to 1.6 % at the lowest level in eight years, a milestone with strong effects. “The main inflation decreased to 1.6 % in July, and this is the lowest level in eight years,” Malhotra said, adding that it is not just a data point, but a beacon of stability that restores consumer confidence and enabling families and companies alike.

For families, this comes as a comfort that affects the need for a high cost of living. For companies and investors, it indicates a period of price stability and the strongest purchasing power conditions that support consumption and long -term demand. This improvement in inflation is further enhanced by the wonderful accumulation of foreign currency reserves, which now reaches $ 695 billion-for example to cover nearly eleven months of imports. He added that these temporary warehouses make India much more flexible to external risks such as global currency fluctuations, oil price screws, or sudden capital flow factors that destabilize many emerging markets in the past.

Malhotra also emphasized that financial stability and price stability should not be seen as restrictions on growth. “Financial stability and price stability do not oppose growth, it is necessary to make growth solid and sustainable,” he said, which confirms the continuous RBI focus on directing the Indian economy through global uncertainty while preserving long -term basics.

Looking to the future, he emphasized two critical fields that would form the future of India. The first is to deepen financial inclusion. He said that while the country succeeded in reaching almost every village with a basic banquet, the next step is to ensure more quality of service and use it. The second is technology. He said that through artificial intelligence and machine learning about to transfer banking services, the financial system in India must be ready to adopt these tools and integrate them to pay efficiency, improve risk management and expand access to credit.

Finally, regarding the issue of rupees, it has been emphasized that RBI has already facilitated commercial settlements in local currencies with countries such as Mauritius, Indonesia and the United Arab Emirates. These arrangements, although they are still in the emerging stage, help reduce the risk of exchange rate and the costs of transactions for Indian companies. However, Malhotra stressed that this is a gradual and long -term process that will develop over the years and decades before trading in local currencies becomes more prevalent.