FT News Briefing India’s central bank governor cheers ‘goldilocks’ economy
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Dec 18, 2025 
Chris Kay, Mumbai Bureau Chief at the Financial Times, discusses India's 'Goldilocks' economy, where growth thrives as inflation declines. He highlights India's central bank governor's projections for sustained low interest rates and the impact of US trade policies on potential GDP growth. Ryan McMurrow, Deputy Beijing Bureau Chief, explains why global brands like Starbucks are partnering with private equity in China, driven by fierce competition and the need for localization. Together, they unravel key economic trends shaping today's markets.
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India's Goldilocks Growth Window
- India combines low inflation with strong growth, creating a rare 'Goldilocks' moment for policymakers.
- Governor Sanjay Malhotra has room to prioritise growth after aggressive rate cuts this year.
Rate Cuts Met With Falling Inflation
- Sanjay Malhotra cut rates 1.25 percentage points this year, the first easing in five years.
- The easing unexpectedly coincided with inflation falling and the economy accelerating sharply.
Strong Headlines Hide Structural Worries
- Economists credit Malhotra with a strong start but flag forecasting weaknesses and data anomalies.
- Concerns remain about stagnant wages, weak job creation and tepid corporate investment despite headline growth.