Makers of India’s New Money Chiefs To Encourage Easy Growth
NEW DELHI — India announced new financial regulators to grow the economy on March 5, 2025. The government appointed Tuhin Kanta Pandey as the chairman of the Securities and Exchange Board of India (SEBI) and Sanjay Malhotra as the governor of the Reserve Bank of India (RBI). These moves, and announced in the capital, are intended to accelerate the economy, which has been slowing down, with new leadership.
India’s economy has found itself in a rough patch. Growth slowed to 5.4 percent last year, down from 7 percent in 2023, prompting worrisome signs among leaders and investors. The stock market, too, suffered a major blow, dropping $1 trillion in value following a long slump. He takes over from Madhabi Puri Buch at SEBI. Another ex-bureaucrat takes over at RBI, succeeding Shaktikanta Das They say these picks signal an agenda for pro-growth policies.
The government is hoping Pandey and Malhotra can do wonders. The Pandey led SEBI’s three-year term commenced this week. Malhotra took over as the RBI governor in December 2024. Both have strong connections to the finance ministry, leading to concerns about their independence. Their expertise, though, could help address India’s economic challenges.
Why New Regulators Matter
India’s banks could do with a jolt. You govern the banks and cash flow (RBI) as SEBI rules over the stocks and investment. They influence the flow of cash in the country. With growth slumping, the government needs them to relax rules and kick-start spending. “We need to do bold things to uplift growth,” said Nirmala Sitharaman, India’s finance minister, at a press conference Tuesday. She said Pandey and Malhotra are coming to the job with “experience and vision.”
Pandey’s final job was as finance secretary, during which he promoted large sales of state-owned companies. At SEBI, he will probably have to work on reviving jittery markets and restoring investor confidence. RBI is expected to tweak interest rates and the rules for banks, particularly under the previous finance minister, former Union secretary Malhotra. Some fear their government connections may blur lines between regulators and policymakers. Others view it as a plus for swift action.
Challenges Ahead
The fresh regulators have big tests ahead. Inflation is rising, and jobs aren’t growing quick enough. The $1 trillion decline in the stock market sent shudders through investors worldwide. Buch, who was previously SEBI’s head, tightened rules on funds and trading, but took flak for a tussle with the Adani group. Das, previously the RBI governor, held rates steady to battle inflation, in the process constricting growth. Pandey and Malhotra need to strike that balance between stability and speed.
Analysts are divided on what comes next. Others say relaxed rules will unleash a boom. Others say too much change could rattle markets more. The first moves of the duo — rate cuts, stock reforms — will tell their plan. For now, all eyes are on New Delhi as India gambles on these leaders to solve its money troubles.
Next Steps for India’s Economy
These appointments may transform the financial future of India. If Pandey and Malhotra come through, growth could edge back toward 7% by 2026. It could lead to more jobs, happier investors and a firmer rupee. But that failure risks deeper stagnation — or, worse, a crash. Their connections to Prime Minister Narendra Modi’s team signal quick decisions to come. The world is waiting to see if India’s new money bosses can stage an economic revival.
References:
- Reuters: India File: New regulators join ‘team growth’
- Kotak Life: List of Financial Governing Bodies
- Groww: Financial Regulatory Bodies in India
- Department of Economic Affairs: Financial Regulators
- Scripbox: List of Financial Regulators in India