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.
Currently serving as revenue secretary, Malhotra, a 1990 batch IAS officer of Rajasthan cadre, will take over following 10 December retirement of incumbent governor Shaktikanta Das.
India's microfinance sector has been facing challenges like over-borrowing & regional stress. Spandana Sphoorty, a 20-yr-old micro-credit company, reported a Rs 216 cr loss in Q2 FY25.
Central banks can intervene in forex market to influence exchange rate. Analysis by ThePrint shows RBI has been doing this for months, but last week saw rupee fall sharply nevertheless.
Unsecured loans have been a concern for RBI for a while now. Last year, it took steps to make it more expensive for banks, NBFCs to give them out in bid to deter such borrowing.
Change in stance signals possibility of rate cuts, potentially as early as December, depending on inflation trends & global economy. Growth projection for FY 2024-25 retained at 7.2%.
Israel-Iran conflict, along with outlook on inflation & growth in an uncertain global environment will be key areas of concerns for new members of the reconstituted committee.
US & Indian policy rates have seen similar trajectory. With Fed’s rate cuts, difference between interest rates in India & US may widen, leading to foreign capital inflow & stronger Rupee.
According to SBI research, inflation is projected to remain below or close to 5% in coming months. For the full FY25, it is likely to average to 4.6-4.7%.
One analyst noted that Trump’s tariff on India signals a clear shift from Washington’s earlier view of New Delhi as a friendly partner to a strategic adversary.
India’s industrial output growth saw a 10-month low in June, with Index of Industrial Production (IIP) growing by mere 1.5% as against 1.9% in May 2025.
Standing up to America is usually not a personal risk for a leader in India. Any suggestions of foreign pressure unites India behind who they see as leading them in that fight.
India’s economic management has been a joke for the last 70 years, what with Marxist PMs and pliable RBI governors. No wonder India continues to be dirty poor with a few islands of prosperity.
IAS officers are ‘The Hindu’ newspaper brainwashed and certified, who toe the line of socialists and communists. Hence, it is easy for most governments to work with them. Whereas outsiders will flip the bird at governments
India’s economic management has been a joke for the last 70 years, what with Marxist PMs and pliable RBI governors. No wonder India continues to be dirty poor with a few islands of prosperity.
IAS officers are ‘The Hindu’ newspaper brainwashed and certified, who toe the line of socialists and communists. Hence, it is easy for most governments to work with them. Whereas outsiders will flip the bird at governments