Rbi Governor – Amar Ujala Hindi News Live – ryan
Reserve Bank of India Governor Sanjay Malhotra said after a meeting of the Monetary Policy Committee on Wednesday that the economic landscape of various regions has been blurred due to the ongoing tariff war. Malhotra said that this has increased the risk of creating new challenges related to growth and inflation in the world. On the impact of US counter tariffs on India, the RBI Governor said that it will have a negative impact on the country’s exports.
After the first MPC meeting for the current financial year, the Governor of the Reserve Bank said, “Global uncertainties may show pressure on the export of goods. The export of services is expected to remain flexibility. The challenges caused by the disruptions related to global trade will increase the risk of decline in the world market.” In view of global uncertainties, the RBI has also reduced the development estimate for the current financial year from 6.7 percent to 6.5 percent.
“Uncertainty has been at high levels due to increasing instability in the global economy in the global economy in recent times. The growth rate for the current financial year has been reduced to 20 basis points as compared to an assessment of 6.7 percent in February.”
He said, “Recent trade fee-related developments have further increased uncertainties on economic scenario in various fields. This has created new challenges for global development and inflation. Between this turmoil, there has been a significant decline in the US dollars. It has also reduced the bond returns. Equity markets have been improving; Equity markets have been improving; and crude oil prices have risen at the lowest level.”
He said that in view of the current situation, the central banks are taking careful steps. There are indications of changes in policies in different areas. They are making their policies based on their domestic priorities.
The RBI governor said, “However, there are many known unknown things- the influence of relative tariffs, flexibility in our export and import demand, and policy measures adopted by the government, including the proposed foreign trade agreement with the US, etc. It becomes difficult to assess adversely to the adverse effects of tariffs.”
Last week, US President Donald Trump announced a mutual tariff on 60 countries including India, which is effective from April 9. The US has imposed 26 percent mutual tariffs on various products including India’s shrimp, carpets, medical equipment and gold jewelery. This 26 percent fee is in addition to the current fee charged on Indian goods in the US. The US has claimed that the Indian market levies a 52 percent fee on American goods. This new tariff policy is created to reduce the US trade deficit and promote domestic manufacturing.
America was India’s largest trading partner from 2021-22 to 2023-24. The US accounts for around 18 per cent in India’s total goods exports, 6.22 per cent in imports and 10.73 per cent in bilateral trade. India’s trade surplus (difference between imports and exports) on goods in 2023-24 with the US was US $ 35.32 billion. The figure was US $ 27.7 billion in 2022-23, US $ 32.85 billion in 2021-22, US $ 22.73 billion in 2020-21 and US $ 17.26 billion in 2019-20.