At the International Monetary Fund’s (IMF) annual conference on Wednesday, RBI Governor Sanjay Malhotra stated that despite extraordinary global uncertainties, India has had remarkable growth, with estimates of over 8% over the previous year.
The RBI Governor emphasized in his speech that “while tariffs have an adverse impact, it is not a matter of huge concern” and that India’s economy is primarily driven domestically.
The US tariff crisis, which has hampered international trade and delayed economic growth in other countries, was the subject of his reference.
“For a number of reasons, including policy uncertainties, we are living in an era of extraordinary uncertainty. This has made it difficult for the developing market economy to grow. All developing marketing economies need to consider this risk,” the governor of the RBI stated.
Malhotra emphasized the robust foundations of the Indian economy, saying: “India recovered from the effects of the Russia-Ukraine war and COVID-19. We have done a great job of controlling our inflation, bringing it down from its peak in 2022 to 1.5%, the lowest level in eight years. Despite this, the rate of inflation has remained high. He added that oil prices have also decreased.
“India’s fiscal deficit is now at a manageable level and is projected to be 4.4% of GDP for the Center,” the RBI head added. He noted that the total debt is among the lowest in the world.
He stated that this has been made possible by effective collaboration between the fiscal committee and the government.
Malhotra further pointed out that although the dollar lost 10% of its value this year, the Indian rupee has not lost as much as the majority of other currencies. “Higher tariffs and capital outflows are to blame for this. India prioritizes the rupee’s orderly movement,” he stated.
India’s exports to the US increased to $45.82 billion in the first half of the current fiscal year (April-September), a 13.3% increase over the corresponding figure of $40.42 billion in the same period last year, despite the Donald Trump administration’s 50% tariff hike..
Without changing the refinery architecture, India can import an additional $12–$13 billion worth of natural gas and crude oil from the United States, according to the Commerce Ministry. If the energy is available at the “right price,” the administration is eager to diversify the nation’s energy import portfolio.
As part of the trade deal, India is also anticipated to purchase more renewable energy technologies from the US, which will aid the nation in combating climate change.