Financial sector regulators must walk the tightrope to balance growth with stability: Economic Survey
The Hindu
India's Economic Survey highlights the need for financial regulators to balance growth and stability amid global uncertainties.
In today’s era dominated by global uncertainties, India’s financial sector regulators must walk the tightrope to balance growth with stability, noted the Economic Survey 2025-26 which was tabled in the Parliament on Thursday (January 29, 2026).
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“They must strike a balance between openness to global capital flows and the need to insulate the domestic economy from volatile external shocks,” it pointed out.
Moreover, given India’s heterogeneous financial landscape, where sophisticated metropolitan markets coexist alongside underserved rural segments, the Survey recommended that regulators must exercise differentiated supervision: a shorter leash for emerging or fragile segments prone to excessive risk-taking and greater latitude for mature markets.
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“In this context, so far, India’s financial sector regulators have managed the balancing act deftly,” it stated.
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