Won't be found wanting in steps needed for growth
RBI governor on US tariff
This story was originally published at 13:17 IST on 25 August 2025
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--RBI Malhotra: Hopeful US-India tariff negotiations will play out
--RBI Malhotra: Hopeful US-India tariff impact will be minimal
--RBI Malhotra:Hopeful that tariff negotiations with US work in our favour
--RBI Malhotra: Have provided ample liquidity to banking sector
--RBI Malhotra: We will not be found wanting in our job on US tariff threat
--RBI Malhotra:Won't be found wanting in anything needed to support growth
--RBI Malhotra: To give support to tariff-affected sectors if needed
MUMBAI – The Reserve Bank of India will not be found wanting in anything that needs to be done to mitigate the recent threat emanating from US tariffs on goods exported from India, Governor Sanjay Malhotra said Monday. We (at RBI) hope that the trade negotiations with the US play out in India's favour, Malhotra said in a speech at FIBAC 2025, organised by the Federation of Indian Chambers of Commerce & Industry and the Indian Banks' Association here.
Indian exporters are reeling under the threat of the US' 50% tariff on goods exported from India, of which 25% is already being levied from Aug. 7 and another 25% will come into effect from Wednesday. US President Donald Trump had announced the additional 25% duty to penalise New Delhi for its purchase of oil and defence equipment from Moscow.
"We are hopeful that the tariff negotiations will play out and the impact will be minimal," Malhotra said. If these tariffs remain, then 45% of sectors may remain outside the tariff regime, but the remaining 55% will hopefully see minimal impact from US tariffs, he said.
Small-scale exporters and micro, small and medium enterprises from labour-intensive sectors, who will particularly bear the brunt of the US' tariffs, have already called for financial assistance from the government in the form of cheaper credit. They have demanded to bring back the government's flagship credit support schemes like the Interest Equalisation Scheme and Emergency Credit Line Guarantee Scheme.
The RBI has been on a policy easing cycle by reducing the repo rate by about 100 basis points since February. "We have provided ample liquidity to the banking sector and whatever else is required to support the growth of the economy, including that of sectors which are impacted more by tariffs. If it so happens, we will not be found wanting in our jobs," Malhotra said. End
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Reported by Sagar Sen & J. Navya Sruthi
Edited by Tanima Banerjee
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