With the 29th meeting of the Financial Stability and Development Council’s (FSDC) high-level panel set for June 10 in Mumbai, one of the highlights of the meeting would be a review of the country’s state of economy by Finance Minister Nirmala Sitharaman. The review comes in the wake of an uncertain global atmosphere triggered by a salvo of tariff announcements by US President Donal Trump on numerous countries.
The meeting will be attended by all financial sector regulators including the Reserve Bank of India’s (RBI) Governor, Sanjay Malhotra, sources said.
The meeting comes after the RBI announced a record dividend of ₹2.7 lakh crore for FY25 last month – which was 27.4 per cent more than the payout in 2023-24 that amounted to ₹2.1 lakh crore. It is also the first meeting after recorded a growth of 6.5 per cent in FY25, the slowest in the last four years.
The finance minister will chair the meeting to review the current global and domestic economic situation and financial stability and discuss ways to curb digital fraud, since it poses a challenge to the financial system and various financial regulators are grappling with the issue of this menace, sources said.
Besides, the council may also review the progress of measures approved earlier for further development of the financial sector, and to achieve inclusive economic growth with macroeconomic stability. Activities undertaken by the FSDC sub-committee that was chaired by the RBO governor and the action taken by members on the past decisions of FSDC will also come under review.
Indian economy expanded at a faster pace than expected in the last quarter of the 2024-25 fiscal, helping clock a 6.5 per cent growth rate in the year that elevated its size to USD 3.9 trillion and held promise of crossing the world’s fourth-largest economy, Japan, in FY26.
The Indian economy grew at 7.4 per cent in January-March – the fourth and final quarter of FY25, reflecting a strong cyclical rebound that was helped by a rise in private consumption and robust growth in construction and manufacturing, according to the data released by the National Statistics Office (NSO) last week.
Those expected to attend the meeting include Securities and Exchange Board of India (SEBI) Chairperson Tuhin Kanta Pandey, Insolvency and Bankruptcy Board of India (IBBI) Chairman Ravi Mital, and International Financial Services Centres Authority Chairperson K Rajaraman besides the RBI Governor.
Minister of State for Finance Pankaj Chaudhary, Finance Secretary Ajay Seth, Expenditure Secretary Vumlunmang Vualnam, Revenue Secretary Arvind Shrivastava, Financial Services Secretary M Nagaraju and other top officials of the finance ministry will also attend the meeting, sources said.
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