Sanjay Malhotra

Governor, Reserve Bank of India - Led unanimous MPC decision to hold repo rate at 5.25% on February 6, 2026

India surpassed Japan in mid-2025 to become the world's fourth-largest economy. On February 1, 2026, Finance Minister Nirmala Sitharaman presented the Union Budget 2026, introducing a sweeping overhaul of India's tax code—the first major rewrite since 1961—while allocating a record ₹12.2 lakh crore for capital expenditure and ₹20,000 crore for carbon capture technologies. The budget came as the government faces new external pressures: the United States had imposed combined 50% tariffs on several Indian exports in 2025, yet India proved more resilient than expected. Just one day later, on February 2, India and the United States finalized a landmark trade agreement reducing U.S. tariffs on Indian goods from 50% to 18%, bringing India's trade burden in line with regional competitors. Prime Minister Narendra Modi had called the preceding Economic Survey a glimpse of the 'Reform Express,' stating India's momentum is accelerating even during difficult times.

Updated Feb 6

Governor, Reserve Bank of India (26th RBI Governor) - Leads RBI pause on rate cuts Feb 6, 2026; shifts focus to liquidity management as trade deal eases external pressures

In 2025, under Governor Sanjay Malhotra, the Reserve Bank of India (RBI) cut its repo rate by a cumulative 125 basis points—from 6.50% in February to 5.25% on December 5—its sharpest easing since 2019, paired with $16 billion in liquidity injections via bond purchases and a dollar-rupee swap to support what Malhotra termed a rare Goldilocks period of sub-target inflation and strong growth. On February 6, 2026, the RBI's Monetary Policy Committee unanimously held the repo rate at 5.25%, marking a pause in the easing cycle as the central bank shifted its focus from rate cuts to liquidity management through open market operations, citing firm government bond yields and persistent currency volatility despite the trade deal relief.

Updated Feb 5