Sanjay Malhotra Warns Against ‘Killing Golden Goose’ as New RBI Governor

New Delhi, India: Sanjay Malhotra, the newly appointed Governor of the Reserve Bank of India (RBI), emphasized the importance of balancing economic growth with fiscal prudence, cautioning against policies that could harm revenue generation. In his inaugural address, Malhotra urged policymakers to avoid “killing the golden goose” while maintaining the nation’s economic momentum.

Malhotra, 56, a seasoned bureaucrat with over three decades of civil service experience, succeeds Shaktikanta Das as RBI Governor. Known for his meticulous administrative style, Malhotra’s appointment surprised many, with analysts lauding his low-profile yet effective leadership.

As he steps into his role, Malhotra faces dual challenges: inflation remains above the 4% target, with October’s rate reaching a 14-month high of 6.21%, while GDP growth has slowed to 5.4%, a seven-quarter low. Economists anticipate that Malhotra will adopt an accommodative monetary policy, with many projecting a quarter-point rate cut during the Monetary Policy Committee’s February meeting.

Despite his lack of formal training in economics, Malhotra’s tenure in the Finance Ministry showcased his consensus-building approach. He was instrumental in implementing India’s Goods and Services Tax (GST) reforms, spearheading global anti-money laundering evaluations, and mitigating backlash over tax reforms.

Colleagues describe him as a methodical leader who values diverse perspectives and long-term outcomes. His tenure at the RBI will also include managing significant personnel changes, including the departure of Deputy Governor Michael Patra in January.

Malhotra’s cautious yet growth-focused vision is expected to align closely with Prime Minister Narendra Modi’s economic agenda, making him a key figure in navigating India’s fiscal and monetary challenges.