RBI governor Sanjay Malhotra believes that the tariffs imposed on Indian exports are an opportunity for the sector.
In a post-RBI policy press conference, Malhotra told reporters that the impact of tariffs has been ‘minimal’. US President Donald Trump in August imposed 50% tariffs on Indian exports to America, 25% of which are for India’s crude oil imports from Russia. India and the US have resumed discussions for a bilateral trade agreement.
But the former has drawn its red lines on sensitive sectors like agriculture and dairy, while at the same time stressing its strategic autonomy in deciding its sources of energy procurement.
How much have US tariffs hit the Indian economy? What RBI said?
Asked about the impact of tariffs, the RBI governor said, “It’s a minimal impact. It’s not a very high impact because ours is mostly a domestic demand-driven economy.” Also Read | MPC meet: Low inflation, high growth – why did RBI still cut the repo rate? Sanjay Malhotra explains While acknowledging that some sectors have been hit,
Sanjay Malhotra expressed confidence in diversifying. “A few sectors are certainly impacted by it. We have given out relief packages. The government of India has also given out a relief package,” he said. As stated by the central bank governor,
The tariffs are an opportunity. “I think this is an opportunity for us. Exporters have already started looking out, improving not only their productivity but also diversifying, etc. We should be able to come out of this stronger going forward.”
he said. India’s exports to the United States, its biggest overseas market, have declined significantly due to substantial increases in tariffs. During the period from May to October 2025, exports dropped by 28.5%, decreasing from $8.83 billion to $6.31 billion. The reduction occurred after the United States implemented a series of heightened tariffs.
starting with 10% on April 2, escalating to 25% on August 7, and culminating at 50% by end-August—resulting in Indian products facing some of the highest tax rates amongst all US trade partners
