WASHINGTON– Reserve Bank of India Governor Sanjay Malhotra on Wednesday downplayed the impact of the United States’ 50 percent tariffs on Indian goods, saying the measures are “not a matter of huge concern” for India’s overall economic growth.
Speaking at an event during the IMF-World Bank meetings in Washington, D.C., Malhotra emphasized that India’s growth is primarily driven by domestic demand, which helps buffer the economy from external shocks.
“India is mostly a domestic-driven economy. So, while we are impacted by the higher tariffs, it’s not a matter of huge concern,” he said. “There will be an upside if we are able to have an early resolution to the tariffs.”
The comments came as India’s trade delegation continued talks with U.S. officials in Washington. Chief negotiator Rajesh Agrawal was expected to arrive later Wednesday. Malhotra noted that he met members of the Indian negotiating team over breakfast to review key issues.
Despite the steep tariff hike imposed by the Trump administration, India’s exports to the U.S. rose to $45.82 billion in the first half of the current fiscal year (April–September), up 13.3 percent from $40.42 billion during the same period last year.
Meanwhile, India’s Commerce Ministry said the country could increase imports of crude oil and natural gas from the United States by $12–13 billion without altering refinery configurations. The government, it said, remains focused on diversifying India’s energy portfolio as long as supplies are available at competitive prices.
India is also exploring opportunities to source more renewable energy technologies from the U.S. as part of a broader trade package aimed at addressing climate change.
The ministry added that the timing for a full-fledged trade negotiation may not be ideal, given the ongoing U.S. government shutdown and reduced federal workforce.
The latest round of trade talks follows recent meetings in New Delhi between new U.S. Ambassador Sergio Gor and top Indian officials, including Prime Minister Narendra Modi, External Affairs Minister S. Jaishankar, and National Security Advisor Ajit Doval.
Gor also met with Commerce Secretary Agrawal and wrote on X, “During my visit to India, I met with Commerce Secretary Agrawal and discussed U.S.-India economic ties, including increased investment in the United States.” (Source: IANS)
