India’s macro-economic fundamentals have continued to remain very strong, and the country has become an anchor of stability in a volatile world, Reserve Bank Governor Sanjay Malhotra said on Friday (October 3, 2025).

Speaking at Kautilya Economic Conclave 2025 here, the RBI Governor attributed the country’s strong fundamentals to low inflation, good foreign exchange reserves, a narrow current account deficit, and the very strong balance sheets of our banks and corporates.

“It is the combined efforts of the government’s policy makers, regulators, and regulated entities. All in all, despite recent odds, the economy seems well settled into an equilibrium of resilient growth. This is quite a feat that makes India stand out as an anchor of stability in a volatile world,” Mr. Malhotra said.

Finance Minister Nirmala Sitharaman on Friday (October 3, 2025) said India’s capacity to absorb external shocks is strong at a time when the world economy is undergoing a structural transformation.

She said the task before nations is not only to manage uncertainty but to confront trade, financial and energy imbalances.

“Geopolitical conflicts are intensifying. Sanctions, tariffs, and decoupling strategies are reshaping global supply chains… For India, these dynamics highlight both vulnerability and resilience. Our capacity to absorb shocks is strong, while our economic leverage is evolving.

“Our choices will determine whether resilience becomes a foundation for leadership or merely a buffer against uncertainty,” Ms. Sitharaman said at Kautilya Economic Conclave 2025 in New Delhi.

Addressing the session on ‘Seeking Prosperity in Turbulent Times’, Ms. Sitharaman said wars and strategic rivalries are redrawing the boundaries of cooperation and conflict. “Alliances that once appeared solid are being tested, and new coalitions are emerging.” “Thus, what we face is not a temporary disruption but a structural transformation,” she said.

Stating that the Indian economy is resilient and continues to grow sustainably, Sitharaman said that with the steady share of consumption and investment in the overall GDP over the years, India’s growth is firmly anchored in its domestic factors, which minimises the impact of external shocks on overall growth.

“India’s rise as a stabilising force is neither accidental nor transient; instead, it results from a powerful combination of factors,” Ms. Sitharaman added.