Mumbai, Aug. 22 -- The Reserve Bank of India's six-member Monetary Policy Committee (MPC) unanimously decided on 6 August to keep the repo rate unchanged at 5.50% and to maintain a neutral stance.

Nagesh Kumar, director and chief executive of the Institute for Studies in Industrial Development, New Delhi, who is also an external member of the RBI-MPC, said the benign inflation outlook provides policy space, but trade policy uncertainties and weak private investment call for caution.

In an email to Mint, he spoke about the impact of US tariffs, the risk to small businesses and jobs, and the importance of diversifying markets and strengthening policy transmission. Here are his views:

Private investment sentiment has been adversely affect...