 "RBI Governor Sanjay Malhotra says cybersecurity is a top priority for the central bank. AFP")
Days after US President Donald Trump took a swipe at India and Russia by calling their economies “dead,” RBI Governor Sanjay Malhotra offered a sharp counterpoint, highlighting India’s economic strength and future potential, saying that Indian economy “hold bright prospect.”
While announcing the monetary policy, Malhotra said, “…Over the medium term, the Indian economy holds bright prospects in the changing world order, drawing on its inherent strengths.”
The remarks came as the Reserve Bank of India kept the repo rate unchanged at 5.5 per cent, even as the rupee continued to face pressure following Trump’s fresh tariff threats on Indian goods. The currency fell 16 paise on Tuesday after the US President warned of new duties.
The RBI’s decision was announced after the Monetary Policy Committee (MPC) met earlier in the day. Headed by the RBI Governor, the MPC meets every two months to decide the central bank’s policy path.
Malhotra, while emphasising on geopolitical challenges, said that policymakers across the globe are faced with muted growth, slowing inflation.
Trump slams India for its trade ties with Russia
Trump, in a post on Truth Social, had said, “They can take their dead economies down together, for all I care,” accusing India of imposing some of the highest tariffs in the world and hurting US-India trade.
Earlier, Trump on Tuesday (August 5) criticised India as “not a good” trading partner and reiterated his plan to hike tariffs on Indian goods.
Speaking to CNBC, Trump said he would introduce fresh tariffs on India within the next 24 hours. The US has already imposed a 25 per cent tariff rate on certain Indian imports, with the new measures expected to take effect on August 7.