Reserve Bank of India Governor Sanjay Malhotra expressed confidence that ongoing trade talks between India and the US will help cushion the impact of tariffs on the domestic economy.
Speaking at an event on August 25, Malhotra said, “We are hopeful that negotiations on tariffs will play out and there will be minimal impact.” His comments come at a time when concerns are rising over the effect of global trade tensions on India’s growth outlook.
RBI Focuses on Price and Financial Stability
The governor reiterated that the central bank’s primary goal remains price stability and economic growth. He emphasized that monetary policy will continue to balance inflation control with measures that support the economy.
Malhotra also underlined the RBI’s commitment to maintaining financial stability, adding that the country’s foreign exchange reserves are sufficient to cover 11 months of imports, a strong buffer against external shocks.
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Market Update & Insights
Positive trade talks with the US could reduce the risks of tariff-led disruptions.
The assurance on forex reserves provides confidence to investors and markets, signaling strong external stability.
RBI’s stance suggests policy continuity, with focus on inflation management and sustainable growth.
Markets may draw comfort from the central bank’s optimism, even as global uncertainties persist.
By highlighting trade negotiations, policy stability, and robust reserves, the RBI has reassured markets that India remains well-prepared to navigate global headwinds.
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