RBI Governor says India-US trade deal failure would have negative economic impact

RBI Governor Sanjay Malhotra stated that failure to conclude a free trade agreement with the United States would have negative consequences for the economy, though the extent depends on tariff levels applied. Speaking at a post-monetary policy press conference, Malhotra said it was premature to quantify the impact but acknowledged economic headwinds if the deal does not materialise.

India has recently concluded and implemented multiple trade agreements that could help offset potential market disruptions by diversifying export destinations. These agreements may provide alternative pathways to support economic growth if the US trade negotiations do not proceed.