Newly appointed RBI Governor, Mr. Sanjay Malhotra, expressed optimism about India’s economic outlook in 2025. In his foreword to the December 2024 Financial Stability Report (FSR), Mr. Malhotra said that inflation is expected to decline, boosting purchasing power and giving the central bank more flexibility in supporting economic activity. He noted that while the first half of FY 2024-25 saw a slowdown, consumer and business confidence remain strong, with corporations entering 2025 on solid financial footing. However, he cautioned about geopolitical risks, financial market volatility, and emerging technologies. The FSR also highlighted the strong health of India’s financial sector.