📷 Image: Wikimedia Commons / Ministry of Finance of India
Business
India's GDP holds at 7.1% as RBI flags rising inflation, says Sanjay Malhotra
✍️ The Economic Times
🗓 22 Oct 2026, 05:03 AM
👁 19
Reserve Bank of India deputy governor Sanjay Malhotra said the Indian economy continues to grow at 7.1%, but accelerating inflation poses a risk.
The Reserve Bank of India’s deputy governor, Sanjay Malhotra, highlighted that India’s gross domestic product has remained robust at a 7.1% annual growth rate, underscoring the economy’s resilience amid global headwinds.
However, Malhotra warned that the recent uptick in consumer price inflation is a red flag for policymakers. He noted that price pressures are edging higher, which could undermine the gains from strong output growth if not contained.
The RBI is expected to monitor inflation closely and may adjust its monetary stance to keep price stability within the target band, while still supporting the expansionary momentum of the economy.
Analysts view the dual message as a balancing act: sustaining growth without letting inflation erode real incomes. The central bank’s next policy meeting will likely focus on how to temper price rises without curbing the 7.1% growth trajectory.
Overall, the statement reflects confidence in India’s economic fundamentals, coupled with caution about emerging inflationary risks that could affect households and businesses alike.
However, Malhotra warned that the recent uptick in consumer price inflation is a red flag for policymakers. He noted that price pressures are edging higher, which could undermine the gains from strong output growth if not contained.
The RBI is expected to monitor inflation closely and may adjust its monetary stance to keep price stability within the target band, while still supporting the expansionary momentum of the economy.
Analysts view the dual message as a balancing act: sustaining growth without letting inflation erode real incomes. The central bank’s next policy meeting will likely focus on how to temper price rises without curbing the 7.1% growth trajectory.
Overall, the statement reflects confidence in India’s economic fundamentals, coupled with caution about emerging inflationary risks that could affect households and businesses alike.