look news india
The Reserve Bank of India (RBI) is going to get a new governor soon. Sanjay Malhotra, who is serving as Revenue Secretary in the Finance Ministry, will take charge as the 26th Governor of RBI on December 11. The second term of current Governor Shaktikanta Das ends on December 10.
Sanjay Malhotra has over 30 years of experience, and is considered an expert in building consensus on economic policies. He has also played an important role in the successful implementation of the new tax regime.
Sanjay Malhotra: An experienced and capable leader
1. 30 years of extensive experience
Sanjay Malhotra’s tenure spans across a variety of sectors, including:
- Electricity (Power Sector)
- Finance
- Taxation
- Public Policy
He is taking over the reins of RBI at a time when the Indian economy is facing the twin challenges of recession and inflation.
2. Teaching and Qualification
- Graduation in Computer Science from IIT Kanpur
- Post-Graduation in Public Policy from Princeton University (USA)
His educational background and professional experience make him a strong candidate for this important role.
facing economic challenges
1. Slow economic growth
The growth rate of the Indian economy is in a worrying situation. GDP growth rate slowed to 5.4% in the July-September quarter, the lowest in the last 7 quarters.
2. Rising inflation
Retail inflation reached a level of 6.21% in October, which is a record in the last 14 months.
The new RBI Governor will be under pressure to control inflation and balance economic growth. It is the responsibility of the central bank to keep the CPI based inflation rate within the range of 4% (±2%).
Pressure to cut repo rate
1. Government’s stance regarding interest rates
In recent days, Finance Minister Nirmala Sitharaman and Commerce Minister Piyush Goyal have expressed concern over high interest rates. He believes that cutting interest rates will boost the economy.
2. Sanjay Malhotra’s Perspective
Sanjay Malhotra is considered a team player. He believes that controlling inflation is not only the responsibility of RBI, but the role of the government is also important for this.
Malhotra’s contribution to the Finance Ministry
1. Implementation of the new tax system
Sanjay Malhotra played a major role in implementing the new tax regime. This step was taken with the aim of giving more options and flexibility to the taxpayers.
2. Leadership in the Financial Services Department
- Became Secretary of the Department of Financial Services in February 2022.
- He served as the government representative on the RBI Board of Directors.
3. Other important roles
- Was the Chairman and Managing Director of REC (Rural Electrification Corporation).
- He is a 1990 batch IAS officer of Rajasthan cadre.
- During his service in various ministries, he also worked in the Minerals, Information and Broadcasting, Energy, and Commercial Taxation departments.
Main challenges facing Malhotra
1. Economic stability and growth
The biggest challenge before Malhotra will be to speed up economic growth while keeping inflation under control.
2. Equilibrium in policy rates
Higher interest rates put pressure on businesses and consumers. In such a situation, they will have to strike a balance between repo rate cut and economic stability.
3. Global economic uncertainty
Instability in international markets and global recession are affecting the Indian economy. Malhotra will have to address these challenges.