• Source:JND
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Amid global uncertainties and the volatile international relations of India, Reserve Bank of India Governor Sanjay Malhotra on Wednesday assured that the 50 per cent US tariffs on India are “not a matter of huge concern” for India’s growth. Speaking at an event of the IMF-World Bank meetings in Washington, DC, Malhotra stressed that India is a domestically demand-driven economy and the US tariff dispute will have a limited impact on its growth.

The Indian trade negotiating team reached Washington on Wednesday for the next round of trade talks with US officials. At the IMF’s Governor Talks session, Malhotra highlighted the unpredictable global environment. “We are living in times of unprecedented uncertainties on account of various reasons, including policy uncertainties,” he said. “It is a risk that all emerging market economies must take into account,” the RBI Governor added. 

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RBI Governor Points To Robust Indian Economy

During the address, the RBI Governor said that India has emerged strongly from the effects of COVID-19 and the Russia-Ukraine war. India’s exports to the US rose to USD 45.82 billion in the first half of the financial year, a rise of 13.3 per cent over the corresponding figure of USD 40.42 billion in the same time last year.

Additionally, India's fiscal deficit is under control, with the central government deficit projected to be 4.4 percent of GDP. He also noted that India's total debt is among the lowest globally. Good coordination between the government and the Finance Committee has played a key role in this achievement. The RBI governor also said that while the US dollar depreciated by 10 per cent during this time, the Indian rupee did not see such a decline and remained stable.

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The RBI recently intervened in the exchange rates to prevent the Indian rupee from going down below 88.80, the worst that the domestic currency has seen so far on September 30.  

Meanwhile, trade talks resumed days after the new US ambassador to India, Sergio Gor, met Prime Minister Narendra Modi, External Affairs Minister S Jaishankar and National Security Advisor Ajit Doval in New Delhi. Gor also held discussions with Agrawal and later posted on X, "During my visit to India, I met with Commerce Secretary Agrawal and discussed US-India economic ties, including increased investment in the United States."

(With inputs from IANS.)

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