Washington, Oct 15 Reserve Bank of India Governor Sanjay Malhotra on Wednesday asserted that the 50 per cent US tariffs on India are “not a matter of huge concern” for India's growth.
While speaking at an event during the IMF-World Bank meetings in Washington, DC, Malhotra said that India’s status as a “domestic-driven economy” negates the negative impact of US tariffs.
“India is mostly domestic-driven economy. So, while we are impacted by the higher tariffs, it's not a matter of huge concern,” he noted.
However, he added that “there will be an upside if we are able to have an early resolution to the tariffs.”
The Indian trade negotiating team is already in Washington for the next round of trade talks with US officials, and India's chief negotiator Rajesh Agrawal is slated to arrive late Wednesday.
The RBI Governor also said that he met members of the Indian negotiating team over breakfast to discuss the issues.
Despite the 50 per cent tariff hike imposed by the Donald Trump administration, India's exports to the US rose to $45.82 billion in the first half of the current financial year (April-September), which represents a 13.3 per cent increase over the corresponding figure of $40.42 billion in the same period last year.
On Wednesday, the Commerce Ministry stated that India can import more crude oil and natural gas worth $12-$13 billion from the US without altering the configuration of the refineries. The government is keen to diversify the country’s energy import portfolio, subject to availability at the “right price.”
India is also likely to source more renewable energy technologies from the US as part of the trade package, a step that will help the country fight climate change.
The Commerce Ministry also said the US is in a government shutdown, and with a reduced workforce, the time isn't right for a full-fledged negotiation.
Trade talks resume days after the new US ambassador to India, Sergio Gor met Prime Minister Narendra Modi, External Affairs Minister S Jaishankar and National Security Advisor Ajit Doval in New Delhi.
Gor also held discussions with Agrawal and later posted on X, "During my visit to India, I met with Commerce Secretary Agrawal and discussed US-India economic ties, including increased investment in the United States."
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