New Delhi, October 3: Reserve Bank of India (RBI) Governor Sanjay Malhotra has warned that today’s financial stability does not mean protection against future market shocks, given the escalating geopolitical tensions in West Asia.
Speaking at the 5th Kautilya Economic Conclave in New Delhi, he explained that the Indian economy had absorbed geopolitical challenges and emerging inflationary pressures through a position of strength, but complacency has to be avoided.
“Today’s resilience may not necessarily imply tomorrow’s immunity, and we are committed to remain vigilant of emerging vulnerabilities and continue to keep our financial system strong and resilient,” he explained in his speech at the Kautilya Economic Conclave.
While India’s core financial indicators- strong economic growth and moderate retail inflation, remain healthy, Malhotra said that the risks from the global markets remain. Future financial crises may not always come from traditional banking channels, but could come from non-financial shocks like technology outages, cyberattacks, or broader geopolitical conflicts through interconnected global markets.
To insulate domestic financial markets against such shocks, Malhotra has aimed to work towards key economic priorities, including diversifying energy import sources, expanding petroleum reserves, strengthening manufacturing capacities and deepening India’s role in global value chains.
