Mumbai: Reserve Bank of India Governor Sanjay Malhotra has welcomed the recent Free Trade Agreement (FTA) signed between India and the United Kingdom, stating it will benefit multiple sectors, including manufacturing and services. Speaking at the FE Modern BFSI Summit, Malhotra emphasized the importance of such bilateral agreements, particularly as multilateralism has, in his words, “taken a back seat.”
Highlighting ongoing negotiations with other countries, including the United States, he stressed the need for India to actively pursue similar trade pacts to enhance its global economic engagement. “Hopefully, it should help us… that is the way forward now,” he remarked on the UK deal, signed during PM Modi’s two-day UK visit.
Malhotra also expressed support for US Federal Reserve Chair Jerome Powell, commending his efforts to maintain central bank independence amid political pressures. “Maintaining the independence of the central bank is very important. I think he has done a commendable job,” Malhotra noted.
Addressing cryptocurrency, Malhotra confirmed that a government-appointed panel is reviewing regulations, keeping in mind the RBI’s concerns. On the topic of currency dominance, he dismissed the idea of a separate BRICS currency, affirming that India, like other nations, is focused on promoting its own currency. He acknowledged that the US dollar remains the dominant global medium of exchange: “The dollar is here to stay for a long time.”
Malhotra also praised the Petroleum Ministry for managing oil imports efficiently despite international sanctions on Russia, and noted ongoing efforts to expand rupee trade, including pacts with the UAE and potential talks with the Maldives.
