US Tariffs “Not Major Concern,” Says RBI Head
Reserve Bank of India Governor Sanjay Malhotra has downplayed fears over newly imposed U.S. tariffs, saying they are “not a matter of huge concern.” He asserted that India’s economy, driven largely by domestic factors, is well positioned to absorb external shocks.
Strong fundamentals underpin confidence
Speaking at the IMF-World Bank meetings in Washington, Malhotra said India’s macroeconomic fundamentals are robust despite global volatility. He noted that while tariffs do have some impact, the country’s strength lies in its internal demand and resilience.
Optimism amid trade tensions
Malhotra suggested that if trade talks with the U.S. reach a resolution soon, there could be upside for India’s growth. He also reaffirmed that the central bank would intervene if tariff pressures threaten key sectors.
Supporting rupee stability
On the rupee, which has seen pressure since the tariff announcements, Malhotra said the RBI does not target specific levels. The goal is to ensure orderly movement and curb abnormal volatility, he added.
