Sanjay Malhotra

Stories

India's economic trajectory: From fifth to fourth largest economy

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 Union Budget 2026 (India's first major tax code rewrite since 1961), with ₹12.2 lakh crore for capital expenditure and ₹20,000 crore for carbon capture technologies.

Updated May 23

RBI’s 2025 rate-cut cycle meets a US tariff shock

Money Moves

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 RBI cut its repo rate by a cumulative 125 basis points—from 6.50% in February to 5.25% on December 5. It was the sharpest easing since 2019. The cuts came with $16 billion in liquidity injections via bond purchases and a dollar-rupee swap, which Malhotra called a rare Goldilocks period of sub-target inflation and strong growth.

Updated May 9

Notable Quotes

“Inflation at around 2% and growth above 7% present a rare Goldilocks period for the Indian economy.” ([indianexpress.com](https://indianexpress.com/article/business/economy/repo-rate-cut-25-bp-to-5-25-rare-goldilocks-period-says-rbi-governor-10405107/lite/?utm_source=openai))

from RBI’s 2025 rate-cut cycle meets a US tariff shock · Updated May 9

“The benign inflation outlook continues to provide the policy space to support the growth momentum, while we remain vigilant to external risks.” ([indianexpress.com](https://indianexpress.com/article/business/economy/repo-rate-cut-25-bp-to-5-25-rare-goldilocks-period-says-rbi-governor-10405107/lite/?utm_source=openai))

from RBI’s 2025 rate-cut cycle meets a US tariff shock · Updated May 9