India’s growth unaffected by US tariffs, RBI Governor assures at IMF meet

'Domestic Strength Shields India from Tariff Turbulence,’ Says RBI Governor

October 16, 2025

India’s Economic Momentum Strong Despite Global Tariff Turmoil

India has sustained robust economic momentum with growth projections exceeding 8 per cent over the past year, despite global economic turbulence, Reserve Bank of India (RBI) Governor Sanjay Malhotra said at the International Monetary Fund’s (IMF) annual meeting on Wednesday.

Addressing delegates, Malhotra emphasized that India’s economy remains primarily domestic-driven, making it resilient to external shocks such as global tariff disputes and policy volatility.

“While tariffs have an adverse impact, it is not a matter of huge concern for India,” he said, referring to the ongoing US tariff turmoil that has disrupted international trade and slowed growth in several economies.

“We are living in times of unprecedented uncertainties on account of various reasons—including policy uncertainties. This has been challenging for emerging market economies, and it’s a risk all must account for,” Malhotra observed.

Highlighting India’s economic fundamentals, the RBI Governor said the country has successfully bounced back from the COVID-19 pandemic and the aftershocks of the Russia–Ukraine conflict.

“We have managed inflation very well, reducing it from 8 per cent to around 1.5 per cent — the lowest in eight years,” he noted, adding that oil prices have also remained stable, supporting macroeconomic recovery.

Malhotra further stated that India’s fiscal deficit is now at a manageable level, projected at 4.4 per cent of GDP for the Centre. “The total debt is among the lowest globally, and this has been achieved through effective coordination between the government and the fiscal committee,” he said.

The RBI chief also pointed out that while the US dollar depreciated by nearly 10 per cent, the Indian rupee remained relatively stable compared to other emerging market currencies.

“This reflects India’s prudent policies and capital management. Ensuring an orderly movement of the rupee remains a priority,” he added.

Malhotra also emphasized that India’s capital markets are deep and robust, underscoring the growing confidence of global investors in the country’s economic resilience.

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