Mumbai: Newly appointed Reserve Bank of India (RBI) Governor Sanjay Malhotra emphasized the importance of policy stability and continuity while highlighting the need to remain "alert and agile" in addressing emerging global challenges. Speaking to reporters on Wednesday after taking charge as the RBI’s 26th Governor, Malhotra outlined his vision for navigating the complexities of today’s economic landscape.

Malhotra stressed the value of a consultative approach, engaging with stakeholders to ensure well-rounded policymaking. He acknowledged the fluidity of the global situation, shaped by geopolitical tensions, climate change, and political uncertainties.

“While maintaining continuity and stability in policies is crucial, we must also be flexible and responsive to evolving challenges,” he stated. “Businesses and individuals depend on stable and predictable policies—whether in taxation, fiscal, or monetary domains—rather than frequent shifts. Stability remains a guiding principle.”

Assuming leadership at a critical juncture, Malhotra faces the twin challenges of moderating domestic economic growth and rising inflation. India's real GDP growth slowed to a seven-quarter low of 5.4% in the second quarter of the current fiscal year, while retail inflation surged to 6.21% in October 2024, exceeding the RBI’s comfort range.

Balancing growth and inflation will be Malhotra’s top priority. He also reaffirmed the RBI’s commitment to public consultation as a cornerstone of its regulatory and policy framework. “Transparent engagement with the public ensures we fulfill our responsibilities effectively,” he added.

Malhotra brings extensive experience to his new role, having served as Revenue Secretary in the Ministry of Finance and earlier as Secretary of the Department of Financial Services.