Reserve Financial institution of India (RBI) Governor Sanjay Malhotra has stated that the tariffs imposed by the Donald Trump-led US administration on India isn’t a giant concern since India is a domestic-driven economic system.
“India is usually a domestically pushed economic system, so whereas we’re impacted, it is not a matter of big concern,” Malhotra stated, talking on the sidelines of the Worldwide Financial Fund (IMF) and World Financial institution Fall conferences on the IMF headquarters in Washington, DC.
“There will probably be an upside if we’re in a position to have an early decision,” stated Malhotra, who met the Indian group negotiating the commerce take care of US counterparts, too.
What did the IMF say?
The Worldwide Financial Fund warned that the worldwide economic system is exhibiting indicators of pressure from sweeping US tariffs and protectionism, regardless of holding up higher than anticipated to this point.
The RBI is forecasting progress of 6.8 per cent within the fiscal yr ending March 2026, a slowdown from the charges of progress recorded over earlier years. That forecast assumes the 50 per cent responsibility stays in place.
The RBI lowered its key rate of interest by a proportion level in June, however has since left borrowing prices at that 5.5% degree.
FM Sitharaman skips conferences
Union Finance Minister Nirmala Sitharaman skipped this week’s annual World Financial institution and Worldwide Financial Fund conferences in Washington, as India and the US stay in talks over commerce tariffs associated to Russian oil purchases.
As an alternative, the Indian delegation will probably be led by Secretary of the Division of Financial Affairs, Anuradha Thakur. The group additionally included Reserve Financial institution of India Governor Sanjay Malhotra
The 2025 Annual Conferences of the World Financial institution Group (WBG) and the Worldwide Financial Fund (IMF) started on Monday, 13 October and can run till 18 October on the IMF and World Financial institution Group headquarters, in Washington, DC.
The Finance Minister’s absence comes amid ongoing commerce tensions, following the Donald Trump administration’s choice to impose a 50 per cent tariff on Indian items — together with a 25 per cent penalty linked to India’s purchases of Russian oil.
A negotiating group is presently within the US, looking for a “win-win resolution” for either side. Authorities sources advised information company ANI, “Engagement between the 2 sides is occurring.”
They knowledgeable us that the ambassador-designate was in India, the place he met with all of the stakeholders and had productive conferences.
Commerce Secretary Rajesh Agrawal will be part of the Indian delegation within the US on Thursday, October 16, for commerce talks, as reported by PTI. The report claimed that India has indicated its readiness to step up vitality imports from America.
India – US Ties
The relations between New Delhi and Washington have been reeling below extreme stress after Trump doubled tariffs on Indian items to a whopping 50 per cent, together with a 25 per cent extra responsibility for India’s buy of Russian crude oil.
India described the US motion as “unfair, unjustified and unreasonable”. India has additionally been upset over Trump’s new coverage on H1B visas.
Nevertheless, the current telephone conversations between Prime Minister Modi and US President Trump have raised hopes for a optimistic final result from the continuing commerce negotiations.
In our projections, we’ve taken into consideration the upper tariffs within the baseline. Though we’re affected by excessive tariffs, it isn’t a serious concern.
PM Modi spoke with President Trump to reward his peace plan for Gaza. Earlier in September, President Trump was the primary world chief to name and communicate with PM Modi because the prime minister turned 75 the following day on 17 September.
The 2 nations resumed negotiations for the commerce deal after Modi-Trump telephone calls.
