RBI governor Sanjay Malhotra on what happens if India-US trade deal is not finalised

What happened: RBI governor Sanjay Malhotra said India's trade agreements with other countries and diversified exports should help mitigate the impact of possible US tariffs if an India-US trade deal is not finalised. Key numbers: US trade deficit with India estimated at $34 billion last year, down from $41 billion in 2024-25. Why it matters: Malhotra said the impact depends on the extent of tariffs applied and called it premature to answer, though he said there would be some negative impact. Finance Minister Nirmala Sitharaman said talks have reached a plateau.

RBI governor Sanjay Malhotra said India's trade agreements with other countries and diversified exports should help mitigate the impact of possible US tariffs if an India-US trade deal is not finalised.

Malhotra said the impact depends on the extent of tariffs applied and called it premature to answer, though he said there would be some negative impact. Finance Minister Nirmala Sitharaman said talks have reached a plateau.