We are contributing more to global growth than US: RBI guv

RESERVE BANK OF India (RBI) governor Sanjay Malhotra, along with four deputy governors, on Wednesday shared critical insights into the evolving stance on growth, inflation, rate transmission and the shifting global dynamics during the post-policy media interaction.

- FE BUREAU Mumbai, August 6

Excerpts:

What is your view on President Donald Trump calling India a dead economy?

I am not the right person to react to the President. We have the toughest growth rate at 6.5% and are contributing about 18%, which is more than the US, where the contribution is expected to be much less at about 11% or something. So, we are doing well and we will continue to further improve.

The MPC has retained the inflation forecast at 6.5%. We have already revised our growth forecast from 6.7% to 6.5% to reflect global uncertainties. Tariff impacts are still unclear, and we will monitor incoming data closely. As for the phrase 'very limited space,' it was relevant when we shifted from 'accommodative' to 'neutral'. We are continuing with our current stance, so that the phrase doesn't apply right now. We will continue to monitor our macroeconomic conditions on a policy-to-policy basis and accordingly take a call. We will continue to do whatever is required to facilitate good growth while of course maintaining price.