RBI governor flags negative impact if India-US deal fails
In short
RBI Governor Malhotra said after the monetary policy press conference that India would likely face some negative impact if the trade deal with the US does not happen. He said the size of the hit depends on tariffs, so it is too early to be sure.
The report says India has also made other trade deals recently, which could help exports to different markets. The exact effect of a failed India-US deal is still not clear.
What the reporting says
RBI Governor Malhotra said during the post-monetary policy press conference that India could face some negative economic impact if the trade deal with the US does not materialise. He said the effect would depend on how tariffs are applied, and that it was premature to give a firm answer. The report also says India has concluded or implemented other trade agreements recently, which may help diversify export markets, but the exact effect remains unknown.
Why it matters
RBI Governor Malhotra said at the post-monetary policy press conference that India could see some negative economic impact if a trade deal with the US fails. He tied the outcome to the tariffs that might be applied, but said it was premature to answer precisely. The report also notes India has concluded or implemented other trade agreements recently, which could soften the blow by diversifying export markets. The size and timing of any impact were not stated.