RBI Keeps Close Watch on FDI Outflows, Calls Market Fluctuations Cyclical

Sanjay Malhotra, Governor of the Reserve Bank of India, has said that short-term fluctuations in foreign direct investment (FDI) flows and exchange rates are being closely monitored, stressing that such movements are part of normal economic cycles. Speaking at a financial round-table discussion in New York, Malhotra highlighted that temporary FDI outflows should not be seen as a cause for concern, as they often reflect global market dynamics rather than domestic weaknesses. He noted that India’s macroeconomic fundamentals remain strong and resilient.

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