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Informist, Wednesday, Aug. 6, 2025

 

--RBI Malhotra: Expect govt to take fiscal steps to contain crude oil fallout 

--RBI Malhotra: Don't see impact on inflation if crude oil import mix changes 

 

MUMBAI - The Reserve Bank of India does not see a major impact on inflation from any changes in global crude oil prices and expects the government to take necessary steps to mitigate price shocks, if any. Speaking at the press conference after the Monetary Policy Committee meeting Wednesday, Governor Sanjay Malhotra said India imports oil from various countries, including Russia. 

 

"It (the impact of oil price movements) will depend on how much of its impact downwards or upwards is actually taken by the government in the form of excise duties and other tariffs," the RBI chief said. "As of now, we do not see any major impact because of this on inflation, because I think the government will take an appropriate decision on the fiscal side in case there is any shock over there. It's not only Russian oil that we are taking. We are taking oil from many other countries to mix."

 

On Tuesday, Informist Media reported, quoting a senior government official, that India will continue to procure Russian oil, given the price benefit. The official's comments came after US President Donald Trump's repeated, belligerent threat to raise tariffs on India for continuing trade with Russia. On Tuesday, Trump told CNBC in an interview that he would "substantially" raise tariffs on India in the next 24 hours for New Delhi's crude oil purchases from Moscow.

 

Trump has been speaking repeatedly about "raising" tariffs. It is unclear if he would further raise the tariff he announced on Indian goods last week or levy a penalty over and above the tariff for continuing trade with Russia. Trump had Tuesday announced a 25% tariff on Indian goods shipped to the US, along with an additional unspecified penalty for India's procurement of military equipment and energy from Russia. The 25% tariff is set to kick in Thursday. 

 

On Wednesday, the Reserve Bank of India's Monetary Policy Committee left the policy repo rate unchanged at 5.50% in a unanimous decision and retained the stance as 'neutral'. End

 

Reported by Vaishali Tyagi

Edited by Deepshikha Bhardwaj

 

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