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India Reviews U.S. Tariff Shift as RBI Reports No Systemic Strain

Nirmala Sitharaman said a delegation will set its Washington schedule after the commerce ministry’s assessment.

Overview

  • Finance Minister Nirmala Sitharaman said it is too soon to gauge the impact of the latest U.S. tariff changes on the Indian economy as officials continue their review.
  • The commerce ministry is examining implications for bilateral trade, investment flows and key export sectors before deciding next steps.
  • Following a February 20 U.S. Supreme Court ruling that struck down IEEPA-based reciprocal tariffs, the president invoked Section 122 to impose a global tariff effective February 24, raising the planned rate from 10% to 15%.
  • RBI Governor Sanjay Malhotra said the central bank is monitoring developments, sees no systemic issue, and will keep policy data-driven while providing durable liquidity to markets.
  • Sitharaman noted higher gold prices alongside global central bank purchases and said India’s gold and silver imports are not at alarming levels as the RBI monitors flows.