Bench finds reasonable apprehension of bias as Sanjay Malhotra sat on panel that rejected Captain Pramod Kumar Bajaj’s candidature and directs reconsideration within four weeks.
With Sanjay Malhotra at the helm, RBI could shift towards a more dovish monetary policy, but the conventional policy response of rate cuts will not be a given with rising pressure on rupee.
Interestingly, the only governments that did not appoint a civil servant as the RBI governor were those led by Morarji Desai, Indira Gandhi in her second stint, and P V Narasimha Rao.
Speaking at an event in Delhi, Shaktikanta Das said India’s potential growth rate was 7.5% & economy could 'eventually' grow at 8%, adding the current yr's growth was expected to be 7.2%.
Shaktikanta Das' remarks come after Economic Survey said private sector wasn't investing enough in productive areas & Sitharaman highlighted its 'big role' in making India developed nation.
The central bank kept the key repo rate unchanged for an eighth straight policy meeting earlier this month saying robust economic growth will give it space to focus on bringing down inflation towards its medium-term target.
In FY 2025-26, AoN for 55 proposals amounting to Rs 6.73 lakh cr has been accorded by DAC. Both the quantum of AoN given and capital contracts signed, so far, have been the highest in any FY.
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