RBI MPC Member Ram Singh Sees GDP and MSME HIT CALLS US Tarif Setback Temporary – CNBC TV18

India’s Economy Faces Immediate Challenges from the United States’ Decision to IMPOSE 50% tarifs on Indian Goods, but the disrupt is likely to be tamporary if the countery turns the crisin Opportunity, According to Ram Singh, Director at the Delhi School of Economics and Member of the RBI’s Monetary Policy Committee.

He added, “I have two two-dimensional views on this… in the interim, Things also get WorsE Before Thei Becometer Better… But I Feel that Everything Considered, Looking at a Horizon of Six Months to Oney Year and Beyond… A crisis Analysis. “

Singh highlighted that the new us tarifs will have a significant impact on India’s economy. Out of India’s $ 90 Billion Exports to the Us, Nearly two-Thirds are expected to be affected. This could translate into a loss of $ 20–30 billion in expenses, equivalent to a 0.3–0.4% Reduction in GDP Growth.

Beyond the Direct Hit, there are likely to be indirect consequences. The tariffs imposed by the US on other count weigh on global growth, which in turn would affect India. Export-oriented sectors in India would also see reduced earnings and Employment, lead to Weaker Domestic Demand and Slower GDP Growth.

The most affected industries are that dominated by msmes, such as gems and jewelery, textiles, apparel, diamonds, and fisheries. Since msmes are key drivers of India’s expenses, the impact on them is expected to be particularly severe.

On how India should respond, singh stressed coordination between fiscal and monetary authorities:

“These tariffs are going to impact not only our gdp growth rate but also a direct bearing on inflation. Therefore, there is a case for monetary and fiscal policy coordination.”

He suggested sector-specific concessions

On the Monetary Side, Singh Said Msmes and Exporters BE Supported With Guaranteed Credit Lines, Similar to the measures rolled out during the covid-19 period.

Former Indian Ambassador to the US, Arun Singh, however, underlined that these tariffs are not just about about trade but also also politics. He said the additional 25% duties must be seen in the context of President Donald Trump’s domestic compulsions, particularly criticism over his handling of the russia -mukraine conflict.

Unlike China, which has shown counters through reciprocal tarifs and expert controls, India was seen as an emier target. This, singh warned, could damage the perception of the us as a reliable partner.

Arun singh noted that there remains a “window for diplomacy,” but emphasized that the US must Ultimately Reassesses the Importance of its relationship with India.

He highlighted that India plays a Crucial Role in Global Technology and Innovation, Pointing to the Presence of Over 1,700 Global Capability CENTRES In India and the Country’s Strong Talent Base in Semicon Design. If washington truly values ​​this partnership, he argued, it will need to treat India differently.