Optimistic about India-Rus Trade Negotiations: RBI Governor

Mumbai: Reserve Bank of India (RBI) Governor Sanjay Malhotra on Monday Expressed Optimism About The Ongoing India -U Trade Negotiations Reaching a Positive Conclusion.

“We are hopeful that negotiations on tariffs will play out and there will be minimal impact,” The Central Bank’s Governor said an event here.

Malhotra’s comments come as the Sixth Round of India-Hu Bilateral Trade Agreement (BTA) Negotiations, Originally set for august 25, has been posted.

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The governor also said that India’s Robust Foreign Exchange Reserves are Sufricient to Cover 11 Months of Imports and Provide a Strong Buffer Against External Shocks.

“We have very Robust Foreign Exchange Reserves of $ 695 Billion, SFFICINENT to Cover 11 Months of Merchandise Exports. Generations of freedom fighters Gave us a ‘Swatantra Bharat’, A Freedy India, and Now We must work for a ‘Samriddh Bharat’, a Prosperous India, “Malhotra Noted.

He said that the overall impact of tariffs will be minimal, but there are sector like gems and jewelery, textiles, apparel, where there is a potential impact.

From August 7, Us President Donald Trump imposed a 25 per cent tariff on important from India. An additional 25 per cent penalty was also announced, Scheduled to take effect on August 27, Resulting in a Total Tariff of 50 per cent.

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The united states justified its decision as a reaction to India’s continued purchase of russian crude oil. The us claimed that the oil purchase weakened its attempts to apply pressure on russia to resolve the ukraine crisis. The Central Government has rebutted us claims, arguing that russian oil imports stabilized global energy markets.

According to analysts, a total of 50 per cent tariff is unlikely to significantly impact India’s growth due to a robust domestic demand. While Labor-Intensive Textiles and Gems and Jewelry Segment are expected to see a mooderate impact, pharmaceuticals, Smartphones and steel are currantly related to insulated cultivation of exemption, Existing Tarifs and Strong Domestic Demand.