RBI gov asks industry to `invest boldly’ to push growth amid global challenges

Mumbai: RBI governor Sanjay Malhotra urged industry to “invest boldly and champion the entrepreneurial spirit that defines our nation,” stressing the need to push the frontiers of growth as India deals with heightened trade uncertainty and persisting global challenges.

“We must step up efforts to address these challenges and seize the opportunities that are coming our way,” he said.Malhotra said India’s macroeconomic fundamentals remain resilient, giving businesses confidence to expand. “Inflation is moderating, growth has been steady, the external sector is stable, and the financial system is sound. These provide us a strong platform from which industry can plan its next phase of expansion,” he said, pointing out that domestic demand continues to be robust while buffers have been built to absorb global shocks.

The governor was deliverign the inaugural address at the FIBAC 2025 banking event orgainsed by FICCI.The governor assured industry that the RBI would provide a supportive environment through stability in policy. “We will ensure that liquidity conditions remain conducive to growth, while maintaining financial stability,” he said. At the same time, the central bank would not lose sight of its price stability mandate.

“We remain committed to bringing inflation in line with our medium-term target. This is the foundation on which sustained investment and growth must rest,” he said.Malhotra said credit delivery and financial deepening remain priorities. “We are engaging with banks and financial institutions to improve access to funds. Steps are being taken to diversify sources of finance and expand avenues such as corporate bond markets.

Our effort is to see that no viable project is denied financing,” he said.He added that regulation would adapt as the economy evolves. “Our regulatory approach is principle-based and fluid, rather than rigid or prescriptive. This gives businesses the flexibility to innovate while ensuring prudential safeguards. We will continue to strike a balance between facilitating growth and maintaining financial discipline,” he said.

Pointing out while regulation, like friction, was necessary for stability, Malhotra said that there was no conflict betwen RBI’s goal of financial stability and growth.

On technology, Malhotra said digital finance and payments will be central to the next wave of growth. “The RBI will continue to back innovation in digital finance and payments, which have already transformed the financial landscape. We will encourage innovation, but within a safe and secure framework that protects consumers and ensures stability,” he said.The governor also made forward-looking references to emerging areas of opportunity. “Renewable energy, technology-driven manufacturing, exports, and MSMEs are sectors that can define India’s growth path over the coming decade. The RBI is committed to ensuring that financing and policy support are available for these sectors,” he said.Calling for stronger private sector participation, Malhotra reiterated that bold commitments would be critical to sustaining momentum. “The central bank will play its part in maintaining stability and enabling growth. But it is enterprise and innovation that will define our trajectory. I urge industry to look beyond short-term uncertainties and commit to building for the long term,” he said.