Just a moment...

Top
Help
×

By creating an account you can:

Logo TaxTMI
Call Us / Help / Feedback

Contact Us At :

E-mail: [email protected]

Call / WhatsApp at: +91 99117 96707

For more information, Check Contact Us

FAQs :

To know Frequently Asked Questions, Check FAQs

Most Asked Video Tutorials :

For more tutorials, Check Video Tutorials

Submit Feedback/Suggestion :

Email :
Please provide your email address so we can follow up on your feedback.
Category :
Description :
Min 15 characters 0/2000
Make Most of Text Search
  1. Checkout this video tutorial: How to search effectively on TaxTMI.
  2. Put words in double quotes for exact word search, eg: "income tax"
  3. Avoid noise words such as : 'and, of, the, a'
  4. Sort by Relevance to get the most relevant document.
  5. Press Enter to add multiple terms/multiple phrases, and then click on Search to Search.
  6. Text Search
  7. The system will try to fetch results that contains ALL your words.
  8. Once you add keywords, you'll see a new 'Search In' filter that makes your results even more precise.
  9. Text Search
Add to...
You have not created any category. Kindly create one to bookmark this item!
Create New Category
Hide
Title :
Description :
❮❮ Hide
Default View
Expand ❯❯
Close ✕
🔎 News - Adv. Search
TEXT SEARCH:

Press 'Enter' to add multiple search terms. Rules for Better Search

Search In:
Main Text + AI Text
  • Main Text
  • Main Text + AI Text
  • AI Text
Category: ?
Categorized by AI
---- All Categories ----
  • ---- All Categories ----
  • Income Tax
  • GST
  • Customs, DGFT & SEZ
  • FEMA & RBI
  • Corp. Laws, SEBI & IBC
  • PMLA, Black Money & ED
  • Budget
  • News and Press Release
  • PTI News
Month:
---- All Months ----
  • ---- All Months ----
  • January
  • February
  • March
  • April
  • May
  • June
  • July
  • August
  • September
  • October
  • November
  • December
Year:
---- All Years ----
  • ---- All Years ----
  • 2026
  • 2025
  • 2024
  • 2023
  • 2022
  • 2021
  • 2020
  • 2019
  • 2018
  • 2017
  • 2016
  • 2015
  • 2014
  • 2013
  • 2012
  • 2011
Sort By: ?
In Sort By 'Default', exact matches for text search are shown at the top, followed by the remaining results in their regular order.
Relevance Default Date
    Wall Street ticks higher in early trading with tenuous ceasefire tested in Iran
    MPC members voted for status quo on rates amid West Asia crisis: RBI minutes
    West Asia crisis: Govt considering customs duty cut on critical induction cooktop components
    MSCB scam: Court discharges NCP (SP) leader Rohit Pawar, others in ED case
    Atal Pension Yojana (APY) Crosses Historic Milestone: Total Gross Enrolments Surpass 9 Crore.
    MCA expands eligibility criteria of the Prime Minister Internship Scheme (PMIS) to include final-year graduate and post graduate students.
    BlueFocus Reports 2025 Results as AI-Driven Revenue Reaches USD 546.05 Million and Token Usage Surpasses One Trillion
    From Salary to Savings: AU Small Finance Bank on Structuring Your Savings Account for the New Financial Year
    India’s Seafood Exports Hit All-Time High of ₹72,000 Crore.
    TCS case: Prime accused seeks bail, says complaint filed due to frustration or parents' pressure
    Rupee plunges 28 paise to settle at 93.44 against US dollar
    Garment workers protest in Ranchi over delayed salaries, HR blames US tariffs
    Kharge's 'terrorist' remark shows Cong's frustration: Union minister Annpurna Devi
    Income Tax Department’s outreach programme spotlights key features of new Income Tax Act, 2025
    RBI’s Role in India’s Growth and Navigating Global Challenges - Address by Shri Sanjay Malhotra, Governor, Reserve Bank of India, at Princeton Uni...
    India and Bhutan hold 7th Joint Group of Customs (JGC) meeting in Munnar, Keralam, on 20th-21st April 2026
    Garment workers protest in Ranchi over delayed salaries
    DISCUSSION PAPER ON PROPOSED AMENDMENTS TO THE IBBI (VOLUNTARY LIQUIDATION PROCESS) REGULATIONS, 2017 - INSOLVENCY AND BANKRUPTCY BOARD OF INDIA
    DISCUSSION PAPER ON (CREDITOR-INITIATED INSOLVENCY RESOLUTION PROCESS) REGULATIONS, 2026 - INSOLVENCY AND BANKRUPTCY BOARD OF INDIA
    Juniper Green Energy Makes History as India's First FDRE Project Enters Commissioning Phase
❯❯
Maximize Maximize Maximize
0 / 200
Expand Note
Add to Folder

No Folders have been created

+

Are you sure you want to delete "My most important" ?

NOTE:

News
Showing Results for :
Reset Filters
Results Found:
Show All Summaries Hide All Summaries
April 22, 2026
Show AI Summary
Market volatility and energy disruption concerns shape cautious trading as investors watch the Iran ceasefire and Strait of Hormuz.
Wall Street traded cautiously higher in premarket action as markets reacted to an extended ceasefire involving Iran and continuing uncertainty over whether the truce would hold. Oil prices remained volatile amid concern over energy disruption and the Strait of Hormuz, while broader global markets showed mixed moves. The report also noted company-specific trading in Boeing and Best Buy, and wider market reactions in Europe and Asia against the backdrop of inflation pressure, trade deficits, and tariff-related supply effects.
April 22, 2026
Show AI Summary
Monetary policy rates stay unchanged as West Asia conflict raises inflation, growth and supply chain risks.
The Monetary Policy Committee retained the benchmark repurchase rate unchanged and maintained a neutral stance amid uncertainty from the West Asia conflict. The minutes describe the situation as a supply shock affecting exports, critical commodity supplies, energy and other commodity prices, remittances, trade flows, and global demand, with supply chain disruptions and a weaker rupee creating upside risks to inflation and downside risks to growth.
April 22, 2026
Show AI Summary
Customs duty relief and GST reduction on induction cooktops aim to ease prices and support domestic manufacturing amid crisis-driven supply stress.
Consideration of a customs duty reduction on critical induction cooktop components and a proposed GST reduction on induction cooktops seeks to support domestic manufacturing and improve affordability amid supply disruption caused by the West Asia crisis. The government has also extended the implementation timeline for the mandatory quality control order on certain electrical appliances and pushed back related energy efficiency timelines. Parallel facilitative steps were taken by the Petroleum and Explosives Safety Organization to maintain uninterrupted fuel and gas availability through approvals, temporary relaxations, and infrastructure-related guidelines.
April 22, 2026
Show AI Summary
Money laundering prosecution linked to cooperative bank scam and predicate offence closure report in focus
A special court considered discharge applications in an Enforcement Directorate money-laundering case linked to the Maharashtra State Co-operative Bank scam. The prosecution stemmed from allegations of fraudulent sale of cooperative sugar mills without due procedure and irregular loan disbursal causing losses to the state exchequer. The ED had filed a main prosecution complaint and supplementary complaints against 17 accused and opposed discharge, citing pending proceedings related to the underlying closure report and writ petition. The issue concerned the continuation of the money-laundering case after acceptance of the closure report in the predicate offence.
April 22, 2026
Show AI Summary
Atal Pension Yojana expands voluntary pension security with guaranteed benefits, spouse continuation, and nominee corpus return.
Atal Pension Yojana is a voluntary, contributory pension scheme administered by the Pension Fund Regulatory and Development Authority as part of India's social security framework for workers in the unorganised sector and other eligible citizens. It provides a guaranteed monthly pension at 60 years of age, continuation of the pension to the spouse after the subscriber's death, and return of the accumulated corpus to the nominee after the death of both. Eligibility is limited to Indian citizens aged 18 to 40 years who are not income tax payers.
April 22, 2026
Show AI Summary
Prime Minister Internship Scheme eligibility expanded to include final-year graduate and postgraduate students with institutional NOC requirements.
The Ministry of Corporate Affairs has expanded the eligibility criteria for the pilot phase of the Prime Minister Internship Scheme to include final-year undergraduate and postgraduate students, while requiring continued compliance with the existing eligibility criteria. Applicants must submit a No Objection Certificate from their educational institution confirming that participation in the internship will not interfere with academic requirements. The scheme is designed to provide structured, paid internship opportunities through the official PMIS portal.
April 22, 2026
Show AI Summary
AI-driven revenue and workflow automation define BlueFocus's 2025 strategy, alongside expanded talent, investment, and overseas growth.
BlueFocus reported 2025 results showing stronger operating momentum and increased AI-driven revenue, with token usage exceeding one trillion as a measure of AI integration across workflows. The company said AI is embedded in social media insights, creator analysis, advertising risk control, creative extraction, budget adjustment, and video production through its Blue AI platform, while also expanding AI talent, AI Native investments, and overseas operating capacity.
April 22, 2026
Show AI Summary
Savings accounts drive disciplined financial planning through budgeting, automation, digital tools and interest rate optimisation.
Savings accounts are described as the starting point of financial planning for salaried individuals at the beginning of a new financial year, when income flows, bonuses and revised compensation structures are reassessed. The article emphasises structured budgeting through multiple accounts or buckets, greater use of digital savings accounts, and optimisation of savings account interest rates through balance management, bank comparison and tier-based structures. It also highlights automation, emergency funds and the growing tendency to review and switch to more efficient banking solutions.
April 22, 2026
Show AI Summary
Seafood export diversification drives record marine earnings as frozen shrimp leads growth despite weaker shipments to the United States.
India's seafood exports reached an all-time high in FY 2025-26, driven primarily by frozen shrimp, which contributed the largest share of export earnings. While shipments to the United States declined amid reciprocal tariffs, stronger growth in China, the European Union and Southeast Asia supported diversification across markets. Additional momentum came from frozen fish, squid, cuttlefish, dried items, live products, surimi, fishmeal and fish oil, with major ports continuing to account for most export value.
April 21, 2026
Show AI Summary
Workplace sexual harassment allegations and delayed FIR claims shape bail plea in the TCS Nashik case.
Bail application filed by an accused in an alleged workplace sexual harassment and religious sentiments case at TCS's Nashik unit. The accused denied disparaging remarks about religion, claimed the complaint arose from frustration or parental pressure, and argued that the FIR was delayed without adequate explanation. The allegations include sexual harassment, deceitful inducement, and outrage of religious feelings, with Scheduled Castes and Scheduled Tribes (Prevention of Atrocities) Act provisions also invoked.
April 21, 2026
Show AI Summary
Foreign exchange regulation eases as RBI partly rolls back non-deliverable forward curbs while the rupee weakens against the dollar.
The Reserve Bank's partial withdrawal of earlier curbs permits authorised dealers and banks to resume offering non-deliverable derivative contracts involving INR to resident and non-resident users, subject to restrictions on related-party transactions, while the USD 100-million cap on net open positions remains in force. The rupee also closed weaker against the US dollar amid a steady dollar, volatile crude prices, and geopolitical uncertainty.
April 21, 2026
Show AI Summary
Delayed wages and labour unrest arise as garment workers protest salary arrears amid export pressure.
Delayed payment of salaries to garment factory workers led to a demonstration outside the plant, with employees alleging non-payment for recent months and severe hardship in meeting household expenses. The company acknowledged that salaries were due and attributed the disruption in garment exports to tariffs imposed by the United States and resulting financial pressure. Labour officials intervened and recorded an assurance that dues for the last two months would be settled, with further discussion proposed on salary irregularities and related worker issues.
April 21, 2026
Show AI Summary
Political controversy over Kharge's "terrorist" remark highlights allegations of misuse of power and criticism of opposition language.
Political controversy arose over Congress president Mallikarjun Kharge's use of the word "terrorist" and his clarification that he meant the Prime Minister was "terrorising" political parties and people by misusing government machinery and central agencies. Union minister Annpurna Devi criticised the remark as a breach of political decorum, calling it evidence of frustration, intellectual bankruptcy and an anti-constitutional mindset.
April 21, 2026
Show AI Summary
Income tax reform outreach promotes simplified procedures, transparency, and awareness for educational institutions and charitable trusts.
Promotional outreach on the newly introduced Income Tax Act, 2025 focused on financial literacy and awareness of provisions relevant to educational institutions and charitable trusts. The programme highlighted the Act's stated objective of simplifying procedures, reducing ambiguities, and promoting transparency through streamlined, technology-driven processes aligned with the Government's vision of Viksit Bharat 2047.
April 21, 2026
Show AI Summary
Price stability and financial stability anchor RBI's growth framework, alongside digital inclusion, UPI expansion and CBDC innovation.
The Reserve Bank of India's role in supporting growth is explained through its core functions of price stability, financial stability and developmental support. The address highlights the Flexible Inflation Targeting framework, the need to manage uncertainty through robustness, gradualism, anchored inflation expectations, transparency and clear communication, and a data-dependent policy stance that looks through first-round supply shocks while preventing second-round inflationary effects. It also describes fiscal-monetary coordination, prudential regulation and developmental initiatives such as financial inclusion, UPI, the Unified Lending Interface and Central Bank Digital Currency.
April 21, 2026
Show AI Summary
Customs cooperation and trade facilitation guide India-Bhutan discussions on border management, data exchange, and transit cargo movement.
Customs cooperation and trade facilitation between India and Bhutan were reviewed through the Joint Group of Customs framework, with attention to border management and cross-border movement of goods. The discussions covered coordinated border management, pre-arrival exchange of customs data, anti-smuggling enforcement, digitisation of customs processes, and transit cargo facilitation through the Electronic Cargo Tracking System, together with border infrastructure, harmonisation of procedures, and maritime enforcement briefings during the port visit.
April 21, 2026
Show AI Summary
Delayed wages at a garment export unit spark worker protest over unpaid salaries and financial hardship.
Delayed salary payments at a garment export unit prompted a protest by more than a thousand workers, mostly women, outside the factory gate in Ranchi. The workers alleged non-payment of wages for prior months and complained of hardship caused by unpaid salary, while the company's HR management acknowledged that wages for the last two months were pending and said steps were being taken to clear the dues.
April 21, 2026
Show AI Summary
Voluntary liquidation regulation reforms tighten claims handling, add termination safeguards, and shift procedural forms to circular-based notification.
Proposed amendments to the Voluntary Liquidation Process Regulations, 2017 revise claims handling, introduce a new termination mechanism, and move operational forms to Board circulars. The liquidator must record reasons for rejecting claims and communicate admission or rejection within seven days, while recourse against the decision is reframed as an approach to the Adjudicating Authority. A new Regulation 42 sets out termination safeguards, reporting requirements, seven-day intimation obligations, and the legal effect of termination on the liquidator's appointment and powers.
April 21, 2026
Show AI Summary
Creditor-initiated insolvency resolution process: draft rules set approval thresholds, moratorium steps, and resolution plan procedures.
Introduces a proposed regulatory framework for the Creditor-Initiated Insolvency Resolution Process under the Insolvency and Bankruptcy Code, 2016, intended to facilitate faster, lower-cost restructuring with limited business disruption. The draft regulations set out the procedural architecture for initiation, commencement, conduct and closure-related matters, while relying on class notifications by the Central Government for eligible corporate debtors, initiating financial institutions and applicable thresholds and conditions. The initiation framework requires the applicant financial creditor to identify eligible financial creditors from information utility records or other available sources, convene a meeting, and obtain approval of at least fifty-one per cent in value of the debt owed to such creditors. The corporate debtor must be served notice of the intended initiation and may submit a written representation within thirty days; if the applicant continues, a further approval threshold applies.
April 21, 2026
Show AI Summary
Firm and dispatchable renewable energy project commissioning advances with solar, wind and storage integration under demand-linked procurement.
Firm and dispatchable renewable energy (FDRE) project commissioning began for an integrated utility-scale renewable project combining solar, wind and battery storage under the Government of India's FDRE guidelines. The project is structured to deliver scheduled, demand-linked clean power through a single arrangement that aligns generation with distribution company demand profiles, and it is being commissioned through a tender-based power procurement framework supported by a power purchase arrangement and back-to-back power sale arrangements. The company also states that it is proposing an initial public issuance of equity shares, subject to statutory and regulatory requirements, approvals and market conditions, and that it has filed a draft red herring prospectus with the securities regulator and stock exchanges. The disclosure further notes that the offered equity shares are not registered under U.S. securities law, may not be publicly offered in the United States, and are intended to be sold only through exempt or offshore transaction structures, including to qualified institutional buyers in the United States.

News

Back

All News

Showing Results for :
Reset Filters
No Records Found

News

Showing Results for : Reset Filters

RBI’s Role in India’s Growth and Navigating Global Challenges - Address by Shri Sanjay Malhotra, Governor, Reserve Bank of India, at Princeton University, USA on April 18, 2026

April 21, 2026

Contents
Summary
Note

Note

-

Bookmark

Print

Print

Good Morning.

1. Let me begin by thanking you for giving me this opportunity to share my thoughts with you. It is indeed a pleasure to be present here amongst some of the brightest minds.

2. I fondly remember the 11 months spent here in 2008-09: from the basics of economics with courses by Bob Willig on anti-trust economics (God bless his soul), Angus Deaton, Alan Blinder (who had thought his lessons on monetary policy and communication would be of so much use going forward!) and the Grossmans, to the lively camaraderie of the small and cohesive MPP batch, the family outings to the beautiful country side in Fall and Spring, and the Princeton-Harvard football rivalry, are all vividly etched in memory.

3. You are all aware of the huge growth story of India in the last decade. We have grown, on an average, by 6.1% per year1, whereas the global economy grew by 3.2% and our nearest peers like China grew by 5.6% and Indonesia by 4.2%2. I will not discuss the core drivers of growth – consumption, investment, services, etc. I will talk about the enablers which work in the background creating a facilitating environment for the core factors to play out.

4. I will talk about RBI’s role in providing this facilitative ecosystem. I may mention here that the RBI, unlike many central banks, is a full-fledged, full-service central bank, with multifarious responsibilities ranging from monetary policy, currency management, forex management and regulation and supervision of banks, non-banking financial companies and payments systems. Apart from being the Banker’s bank, it is the banker and debt manager of the central and state governments. Besides, RBI also has a developmental role. I will, however, be touching upon the core functions of the Reserve Bank, which provide the enabling conducive environment for households, businesses and governments.

I. Price Stability

5. First is price stability. It is a goal all central banks follow - not only because inflation is a regressive tax, which hits the poorest hardest, but also because price stability is important for businesses and households to plan and invest confidently. Unlike some countries like the USA which have an explicit dual mandate and others like New Zealand, which have an explicit single mandate, we have price stability as the primary mandate to be pursued, keeping in mind the objective of growth.

6. We formally adopted this mandate in 2016. We have a Flexible Inflation Targeting (FIT) framework. It is flexible because, while we have a point target (4 %), there is a band of 2% on either side. The relatively wide tolerance band around the target allows us to navigate the supply shocks – internal as well as external, given the large weight of food and fuel (supply side factors) in the CPI basket.

7. How do we conduct monetary policy, especially in navigating the global challenges creating high uncertainty like this? I am reminded of what Alan Greenspan once said that uncertainty is not just an important feature of the monetary policy landscape; it is the defining characteristic. In other words, in central banking, the only certainty you have is uncertainty.

8. This is so because even in times of low uncertainty and volatility, the economy and monetary policy transmission are complex and ever-changing. Economists over the years have tried to understand the relationships between various macroeconomic variables and built models. However, every model, no matter how detailed or how well designed conceptually and empirically, is a vastly simplified representation of the world that we experience with all its intricacies on a day-to-day basis. For example, the slope of the Phillips curve or the the natural rate of interest are uncertain. This itself introduces uncertainty in policy making. There is also uncertainty about data. Along with uncertainty, where we are unable to predict the probability of an outcome, we also have unpredictability now, where outcomes cannot even be predicted. This makes monetary policy making even more difficult.

9. Since, uncertainty is central to monetary policy, the broader guiding principles of our policy-making do not change. It is only their application, which changes.

10. The first principle is to prioritise robustness over optimality. It involves risk management. We try to understand the risks arising out of the uncertainties, assess their probabilities, quantify their impact and then devise a policy that maximises best policy outcomes of price stability and growth.

11. Another principle that we keep in mind is the Brainard’s principle of attenuation. If the central bank is unsure of the magnitude of the effect of a change in its instrument, it should change that instrument less than it would, were if it was sure. In other words, this is the policy of gradualism. There are, however, exceptions to this rule as in the case of inflation persistence.

12. There is a corollary to the Brainard’s principle. If central banks do not react under uncertainty or react gradually, as the Brainard principle would suggest, it could be difficult to manage inflation expectations. Therefore, anchoring inflation expectations becomes crucial, which is another important objective that we pursue through various tools including providing forward guidance.

13. Our fourth guiding principle is transparency, which provides predictability and credibility, and thereby enhances effectiveness. It also removes uncertainty from the minds of economic agents.

14. Lastly, clear communication of a central bank’s strategy and policy decisions, is a very potent underlay to achieve the objectives of monetary policy. It brings clarity of the approach and thus helps in both improving the transparency and anchoring inflation expectations.

15. Coming to the present crisis, it particularly impacts us as West Asia contributes about one-sixth of our exports, one-fifth of our imports, half of our crude oil imports, two-fifths of our fertilisers imports and almost two-fifths of our inward remittances. The appropriate monetary policy response to such a supply shock is to look through the first-round effect to the extent that it does not feed into second-round dynamics. Second-round effects are the real concern. They can materialise if the supply chain disruptions continue for long. Then, what began as a supply shock can become embedded in the general price level. Preventing this entrenchment is where monetary policy has a primary role to play — through its influence on inflation expectations rather than through blunt demand compression.

16. Moreover, in uncertain times such as this, it is important to be agile and nimble, maintaining a broad policy stance, and avoid making firm commitments of the future path of policy. In such circumstances, our broad approach has been to be even more data dependent and to continuously reassess the balance of risks. We are therefore in wait and watch mode now. Moreover, we have been maintaining a neutral stance for the last few policy cycles. It preserves the flexibility to respond as the inflation-growth dynamics evolve.

17. Our decade-long experience with the FIT, in navigating through persisting shocks from the pandemic to the Ukraine war, suggests that it has served us well.

18. Since we adopted FIT, our average headline inflation has dropped to 4.7% (September 2016 to December 2025), down from 7.4% in the years prior (April 2012 to August 2016).

19. Moreover, headline inflation volatility came down to 1.7% from 2.4% over the same period.

20. Inflation expectations are better anchored and less volatile.

21. Even in terms of global perspective, the FIT framework has been a success. From the highest average inflation among both AEs and EMDEs during 2006-2015, inflation in India has moderated to below the average of EMDEs during the last decade.

22. It is also pertinent to mention that post supply chain disruptions due to COVID and the Ukraine war, inflation in India converged to target faster than many advanced countries.

Role of fiscal-monetary coordination in ensuring price stability

23. While we do give credit to monetary policy and flexible inflation targeting for the improvement in price stability, I may mention that fiscal policy has an equally important role to play in this regard. This is specially so in a country like ours, where supply side factors play a large role in inflation.

24. The government has over the years complemented monetary policy actions with supply-side measures to check price pressures. First, the government has prioritised building resilience in agriculture and reducing its vulnerabilities arising from the vagaries of monsoons and crop diseases. This has been achieved by getting more land under irrigation; better seeds; crop management and post harvesting practices. Second, the government has strengthened the storage and supply chain infrastructure, besides building a retail distribution network for essential commodities to be used in times of prices pressures. Third, it has used excise duty on oil as an instrument to reduce the volatility of fuel prices.

25. During the current crisis, domestic production of oil and gas is being ramped up. Sources of imports are being diversified. While there is no shortage of oil, given the reserves maintained by us, there is some rationing of gas for industrial purposes. The oil marketing companies and government have absorbed the price pressures in oil, while passing on some of the price pressures on gas to the consumers.

26. Moreover, fiscal consolidation has progressed steadily in recent years, with enhanced efficiency in tax collections and improvement in the quality of expenditure.

27. On the revenue side, adoption of GST and sweeping reforms in income tax including digitalisation, simplification, rationalisation, and reducing human interface in tax assessment and collection have helped improve tax buoyancy3. Gross GST buoyancy (Centre plus State revenue) over the eight-year period post GST from 2018-19 to 2025-26 is 1.23. Buoyancy in corporate tax has generally been above one since corporate tax rate was reduced and personal income tax buoyancy has averaged 1.7 in the last five years.

28. On the expenditure side too, government spending is better targeted. The quality of expenditure has improved. Direct Benefit Transfer, which is estimated to have brought savings of about 50 billion USD (until March 2024)4; digitalisation of various government programmes like public distribution scheme; and just-in-time flow of funds to state governments are some examples of enhancing expenditure efficiency. Its approach to the pandemic is a case in point. Rather than front-loading stimulus packages, as most countries did, India adopted a flexible and agile approach to support the vulnerable sections of society and small firms.

29. Revenue expenditure as a percentage of GDP decreased to 10.8% in 2025-26 (RE) from 13.6% in 2021-22. In contrast, there has been a robust increase in capital expenditure. The share of central government’s capital expenditure as a percentage of GDP has surged from 1.7% in 2019-20 to 3.1% in 2025-26 (RE). Including the capital grants in aid to the states, it has increased to 3.9% (RE).

30. The central government’s fiscal deficit to GDP ratio has declined from 9.2% in 2020-21 to 4.4% in 2025-26 (RE). India’s general government debt to GDP ratio at 81.1% (in 2024-25) is reasonable, with the world’s top 10 economies (in terms of nominal GDP in USD), other than Germany and Russia5, having higher debt ratios than India.

II. Financial Stability

31. I now come to financial stability. It is the bedrock on which an economy prospers and grows sustainably.

32. Our pursuit of financial stability is duly reflected in our broader regulatory framework. We have been willing to sacrifice some short term upside for long term growth. While some regard this as conservatism, we believe it is prudence. This is evident from our resilience over various crises. I will highlight this with a couple of examples.

33. When the Asian financial crisis swept through the region in 1997–98, it brought down currencies and economies that had been held, only months earlier, as models of export-led development. India watched from a position of comparative stability, and the reasons were not accidental.

34. RBI had maintained controls on the capital account, particularly for residents. Short-term external debt was maintained at levels well below what foreign exchange reserves could comfortably cover. It refused to permit the kind of short-term foreign currency borrowing that had left our regional neighbours exposed to sudden reversals in sentiment. When intervention in the foreign exchange market was warranted, the RBI acted — but it did not commit to an indefensible peg. India’s current account deficit was manageable and foreign currency exposure reasonable. The lesson embedded is that for a country at India’s stage of development, the sequencing of capital account liberalisation is not a technicality — it is a first-order question of macroeconomic sovereignty.

35. If the Asian crisis demonstrated the importance of external discipline, the subprime crisis of 2007-08 showed the importance of maintaining internal discipline. As the global financial system was developing ever more elaborate and complex financial architecture through the mid-2000s, the RBI was doing something that appeared unpopular by prevailing standards. When in 2002, interest rates were falling and banks had no reason to anticipate a reversal, the RBI required them to build a counter-cyclical buffer called the Investment Fluctuation Reserve, against precisely that eventuality. Subsequently, during 2005-07, risk weights and provisioning requirements were raised, inter alia, for commercial real estate. On securitisation, recognition of profits was required to be spread over the life of securities. Moreover, accounting standards at the time did not permit the recognition of unrealised gains.

36. None of these was particularly popular at the time. But when the global financial system came under stress, these measures gained significance. Indian banks came out of the crisis with relatively stronger balance sheets.

37. We continue to value financial stability. A number of measures have been taken in the last decade. Asset Quality Review launched in 2015, Insolvency and Bankruptcy Code (IBC), 2016; alignment of prudential norms to global standards, and governance reforms in PSBs are some of them.

38. On account of these, our financial system is very healthy and resilient today, thereby supporting economic development.

III. Developmental Role

39. Maintaining price and financial stability are the core mandates of most of the central banks. But the role of RBI traverses beyond these confines. We have a large developmental role.

40. RBI played a critical role in financial inclusion. It collaborated with the government for the Jan Dhan program which was launched in 2014 on a mission mode. Leveraging the digital identity called Aadhar and mobile penetration under this mission, India ran the largest financial inclusion drive in human history in the last decade. Over 570 million bank accounts were opened for people who never had one. Almost everyone has a bank account today. This enabled Direct Benefit Transfers from governments, which bypassed the middlemen. It eliminated leakages. This revolution silently empowered people.

41. RBI has played a pivotal role in the development of UPI. This is a success story without any parallel. Today, India accounts for nearly half of the world's real-time digital payments volume. UPI processed over 22 billion transactions in March this year. The developmental mandate of RBI, a robust digital public infrastructure, widespread mobile ownership and low-cost data access along with a large presence of public sector in the banking space helped India leapfrog in digital payments. We have already taken UPI global with acceptance in 8 countries and are now working to connect it with many more including the European Central Bank's TARGET instant payment systems (TIPS).

42. We are currently building the Unified Lending Interface (ULI) to give lenders instant digital access to data, allowing them to assess credit worthiness within minutes for small farmers and business owners who previously had no documents to show or had to spend considerable time and effort at a bank.

43. We are also pushing the frontiers with our Central Bank Digital Currency (CBDC). It has the potential to make cross-border payments faster and cheaper. We are even testing programmability to direct payments for specific uses and purposes.

44. Our developmental mandate helps the national goal of inclusive growth.

V. Conclusion

45. Let me now conclude.

46. The resilience of the Indian economy is not by chance. It is because of the robust policy frameworks that have been successfully developed. It is due to the strong and credible institutions that have been assiduously built. It is on account of the various reforms undertaken steadily over the years. It rests on a foundation of stability and inclusion.

47. With these words, I thank you all for your patient audience. I will be happy to take questions, if any.

---

1 Pertain to the period 2015-16 to 2024-25 based on National Statistical Office (NSO) data.

2 Pertain to the period 2016-2025 based on IMF data.

3 Tax buoyancy is measured as a ratio of % change in tax revenue to % change in GDP.

4 https://dbtbharat.gov.in/static-page-content/spagecont?id=18

5 IMF Fiscal Monitor, April 2026.

Topics

Acts Income Tax