Washington: Reserve Bank of India Governor Sanjay Malhotra on Wednesday said that the 50 per cent US tariffs on Indian goods are “not a matter of huge concern” for the country’s economic growth. Speaking at an event during the IMF-World Bank meetings in Washington, DC, he noted that India’s largely domestic-driven economy cushions the impact of higher tariffs.
“India is mostly a domestic-driven economy. So, while we are impacted by the higher tariffs, it’s not a matter of huge concern,” Malhotra said, adding that an early resolution of the tariffs could provide additional economic upside.
The Indian trade negotiating team is in Washington for the next round of talks with US officials, with India’s chief negotiator Rajesh Agrawal scheduled to arrive late Wednesday. Malhotra also met members of the team over breakfast to discuss the issues.
Despite the tariff hike by the Donald Trump administration, India’s exports to the US rose to $45.82 billion in the first half of 2025-26 (April–September), a 13.3 per cent increase over $40.42 billion in the same period last year.
The Commerce Ministry stated that India can import additional crude oil and natural gas worth $12–13 billion from the US without changing refinery configurations. The ministry also highlighted plans to source more renewable energy technologies from the US to support India’s climate goals.
Trade talks come amid a US government shutdown, which has slowed negotiations due to a reduced workforce. The discussions follow the recent visit of US Ambassador to India, Sergio Gor, who met Prime Minister Narendra Modi, External Affairs Minister S. Jaishankar, and National Security Advisor Ajit Doval in New Delhi. Gor also engaged with Agrawal, posting on X that they discussed US-India economic ties, including increased investment in the United States.
With IANS inputs