Reserve Bank of India Governor Sanjay Malhotra on Monday said that the Indian economy’s recent achievements are “very creditable and widely recognised,” despite facing unprecedented challenges in recent years. “The achievements of the Indian economy, despite unprecedented challenges in the last few years, are undoubtedly very creditable and widely recognized. The Indian economy today is characterized by robust macroeconomic fundamentals,” Malhotra said.Speaking at the annual FIBAC conference, themed “Charting New Frontiers” and jointly hosted by FICCI and the Indian Banks’ Association (IBA), Malhotra highlighted India’s strong post-pandemic recovery and resilience.“We are all set and projected to be the third largest economy in the coming years,” he said, noting that the economy has recorded a nearly 8 percent compound annual growth rate (CAGR) over the past four years.Malhotra pointed out that average inflation has remained contained at 4.9 percent annually over the past decade, aided by the inflation-targeting framework. He also underlined the strength of India’s external sector, with the current account deficit at just 0.6 percent of GDP in FY24, supported by robust services exports and record inward remittances.“We will continue to strengthen financial stability, this is our primary objective,” Malhotra added.India’s foreign exchange reserves, at USD 695 billion, are sufficient to cover 11 months of imports, making the country the world’s top recipient of remittances, Malhotra said.He credited these achievements to prudent fiscal and monetary policies, structural reforms, large-scale infrastructure growth, better governance, and higher productivity.“As we navigate choppy global economic environment, we need to push frontiers of growth,” Malhotra said at the event. On regulation, Malhotra emphasized the importance of striking the right balance. While regulations ensure financial stability and protect depositors, he cautioned that excessive restrictions could obstruct growth.“The art of regulation-making lies in finding the right balance between safety and growth, the right amount of friction, in other words. Pursuit of this balance or optimal regulation has always been our constant endeavour in the RBI,” he said.Malhotra had previously emphasized that the central bank will stay agile and proactive in tracking global and domestic trends. He noted that despite external challenges, the Indian economy continues to maintain steady growth with price stability.