The Governor of Reserve Bank of India (RBI) Sanjay Malhotra said that tariffs stored by the US administration led by Donald Trump in India are not a big problem because India is a domestic economy.
“India is mostly an economy driven on the domestic market, so when we are hit, it is not a huge concern,” Malhotra said, talking about the side places of the International Monetary Fund (IMF) and the World Bank Fall meetings at the IMF headquarters in Washington, DC.
Also read | India-USA Business Talks: The Indian Team in America seeks to have a “mutual advantageous solution”
“If we are able to have a timely solution, it will exist upside down,” said Malhotra, who met an Indian team that also negotiated a business agreement with American counterparts.
What did the IMF say?
The International Monetary Fund He warned that the global economy shows signs of tension from sweeping American tariffs and protectionism, although it holds better than expected.
RBI predicts growth of 6.8% in the fiscal year ending in March 2026, which is a slowdown since the growth rate recorded in previous years. This prognosis assumes that 50% of the obligation remains in place.
In June, RBI reduced its key interest rate by a percentage point, but has since left the cost of loans at this 5.5% level.
FM Sitharaman skips the meeting
Union Finance Minister of Nirmala Sitharaman jumped this week the annual meetings of the World Bank and the International Monetary Fund in Washington because India and the United States remain in interviews on business tariffs related to Russian oil purchases.
Instead, the Indian delegation will be led by the Minister of the Ministry of Economic Affairs Anuradha Thakur. The team also included Governor of Reserve Bank of India Sanjay Malhotra
On Monday, October 13, the annual meeting of the World Bank (WBG) and the International Monetary Fund (WBG) and the International Monetary Fund (WBG) and the International Monetary Fund began and will take place within 18 October at the MMF and World Bank in Washington, Washington, DC.
Also read | The Committee for Monetary Policy leaves the repositioning rate unchanged in the middle of the tariffs
The absence of the Minister of Finance comes in the middle of the continuing tension of business tension after Donald Trump’s decision to impose 50 % tariff on Indian goods – including 25 % of the punishment associated with Indian Russian oil purchases.
Currently, there is a negotiating team in the US and is trying to find a “mutually advantageous solution” for both parties. Government resources have told the press agency or: “There is an involvement between both parties.”
They informed us that Ambassador-Designate was in India, where he met all the parties and had a productive meeting.
Trade Minister Rajesh agrawal will join the Indian delegation in the US on Thursday, October 16, for business interviews, as PTI states. The report claimed that India had indicated its readiness to increase the imports of energy from America.
India – USA
Relations between the new Delhi and Washington are rolling under serious stress after Trump doubled the tariffs to Indian goods to an incredible 50%, including 25% of the additional obligation to buy Russian oil in India.
India described the US action as “unfair, unauthorized and disproportionate”. India was also upset about Trump’s new policy on H1B visa.
However, recent telephone interviews between Prime Minister Modi and US President Trump have increased the hopes of a positive outcome of the ongoing business negotiations.
In our projections we took into account higher tariffs in the baseline. Although we are influenced by high tariffs, this is not the main problem.
At the beginning of this month, PM Modi spoke with President Trump to praise his peace plan for Gaza. In early September, President Trump was the first global leader to call and spoke with PM Modi, because the Prime Minister turned on September 17 by 75 years.
Also read | India, US business conversations at different levels: official
Both countries continued negotiations on a business agreement after phone calls Modi-Trump.
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