RBI governor Sanjay Malhotra during a press conference after announcing the first bi-monthly monetary policy of the current tax year, in Mumbai, on April 9, 2025. | Photocredit: PTI
Governor of the Sanjay Malhotra reserve bank on Wednesday (9 April 2025) said that trade rate -related measures have clouded the economic outlook in regions, which forms the risk of a new headwind for global growth and inflation.
About the consequences of a worldwide rate against India, he said it will have a negative influence on the export of the country.
“The export of merchandise will be weighed by global uncertainties, while the export of services is expected to remain resilient. Wetwind of global trading disruptions will continue to form downward risks,” he said as he unveiled the first bi -monthly monetary policy statement for the current financial year.
RBI has also reduced the growth projection to 6.5% compared to the earlier estimate of 6.7% for the current financial year as a result of global uncertainties.
“Although the risks are considered evenly around these baseline projections, uncertainties remain high in the aftermath of the recent peak in global volatility. It can be noted that the growth projection for the current year has been demolished with 20 basic points compared to our earlier assessment of 6.7% in February,” he said.
This downward revision essentially reflects the impact of global trade and policy security, he said.
“The recent trade rate-related measures have worsened the uncertainties that cloud the economic outlook in regions, which forms new headwind for global growth and inflation. In the midst of this turbulence, the US dollar are considerably weakened; bond yields are considerably softened; stock markets have been corrected;
Under these circumstances, central banks carefully navigate, with signs of policy diving between areas of law, which reflect their own domestic priorities, he said.
“However, there are several well -known strangers – the impact of relative rates, the elasticity of our export and import demand and the policy measures taken by the government, including the proposed foreign trade agreement with the US, to name just a few. These make the quantification of the negative impact difficult,” he said.
Last week, US President Donald Trump announced the imposition of mutual rates at 60 countries, including India, with effect from 9 April. India has attracted 26 percent mutual rate over various products, including shrimp, carpet, medical devices and gold jewelry.
The US has claimed that American goods are dealing with a 52% duty on the Indian market. A new tariff policy that is designed to reduce US trade deficit and to stimulate domestic production.
From 2021-22 to 2023-24, the US was the largest trading partner in India. The US accounts for around 18% of the total export of India, 6.22% in import and 10.73% in bilateral trade.
With America, India had a trade surplus (the difference between import and export) of $ 35.32 billion in goods in 2023-24. This was $ 27.7 billion in 2022-23, $ 32.85 billion in 2021-22, $ 22.73 billion in 2020-21 and $ 17.26 billion in 2019-2020.
In 2024, India’s Main Exports to the US Included Drug Formals and Biologicals ($ 8.1 Billion), Telecom instruments ($ 6.5 Billion), Precious and Semi-Precious Stones ($ 5.3 Billion), Petrolum Products ($ 4.1 Billion) ($ 3.2 Billion), Ready-Made Garments of Cotton, Including Accessories ($ 2.8 Billion), and Products of Iron and Steel ($ 2.7 billion).
The input compelled crude oil ($ 4.5 billion), oil products ($ 3.6 billion), coal, cola ($ 3.4 billion), cutting and polished diamonds ($ 2.6 billion), electrical machines ($ 1.4 billion), aircraft, space-in-law and parts ($ 1..3..
The duty of 26% is above the existing duty that confronts Indian goods in the US
Published – April 9, 2025 1:25 pm is
