Expecting minimal hit from US tariffs, says RBI's Malhotra
mumbai, Aug. 26 -- Increased US tariffs on Indian goods will only have a minimal impact on the economy, Reserve Bank of India (RBI) governor Sanjay Malhotra said, emphasizing the regulator has been "very proactive" in responding to economic challenges and will continue to support growth.
"Now there has been another additional 25% tariff, making it 50%. It's yet to kick in, and we are hopeful that tariff negotiations will play out and the impact will be minimal," Malhotra said at an industry conference in Mumbai, adding the central bank is prepared to cushion the economy from such external shocks.
While about 45% of Indian exports remain outside the US tariff net, the governor acknowledged certain sectors are more vulnerable. "(On) the remaining 55% like gems and jewellery, textiles, emeralds, shrimps and micro, small and medium enterprises (MSMEs)....
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