Economic Survey: Regulators Must Balance Growth, Stability Amid Global Volatility

• The Economic Survey 2025–26 emphasizes that India's financial sector regulators need to balance economic growth support with financial stability.
• Increased global financial integration means faster transmission of global developments and external shocks to the domestic economy.
• Regulators must welcome foreign capital while implementing safeguards against sudden reversals and global stress.
• The Survey advocates for differentiated supervision, with stricter controls for vulnerable segments and flexibility for mature markets.
• Indian regulators have effectively managed this balance, maintaining stability despite global challenges, but future challenges are more complex.

Why It Matters: Financial regulators must adapt frameworks to balance growth and stability amidst increasing global volatility and innovation.