RBI Governor Sanjay Malhotra reaffirmed strong confidence in the resilience of India’s external sector, emphasizing that the country’s macroeconomic fundamentals remain robust despite short-term currency pressures on the rupee.

Addressing queries on whether a gold monetisation programme could be introduced to help cushion dollar demand, he stated that India does not require such a scheme. He highlighted several structural strengths supporting the economy, including ample foreign exchange reserves, buoyant services exports, robust remittance inflows, favorable trade agreements, and ongoing policy initiatives aimed at reducing energy dependence.

He further addressed market speculation regarding the mobilization of idle household gold to ease pressure on the Indian rupee and lower import-driven dollar demand. He emphasized that the central bank has no proposal under consideration for a new scheme

Looking ahead, Governor Sanjay Malhotra expressed optimism about the medium-term outlook for India’s balance of payments. He noted that as geopolitical tensions in West Asia ease and global crude oil prices stabilize downward, India’s external account position is expected to remain firm and well-managed.