How will economy be impacted if India-US trade deal doesn’t happen? RBI guv answers
RBI Governor Sanjay Malhotra stated that India is prepared to mitigate potential economic impacts if a trade deal with the US fails to materialize. He noted that existing trade agreements and export diversification will help buffer the economy against potential US tariffs.
Why it matters
The deadlock in India-US trade negotiations creates uncertainty for exporters and could influence future bilateral economic policy and tariff structures.
India’s trade agreements with other countries should help mitigate the impact of possible US tariffs if a trade deal does not come through, indicated RBI governor Sanjay Malhotra on Wednesday.Asked about the possible impact on the economy if the India-US trade deal is not finalised, Malhotra said, “The impact depends on what extent tariffs are going to be applied. So it's premature to answer. But obviously, it will have some negative impact.”“At the same time, we have had a number of trade agreements now in the recent past. Some of them have been operationalized, others are in the pipeline. They will help.
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