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RBI governor Sanjay Malhotra and US President Donald Trump, (PTI\/Reuters) <\/p>\nReserve Bank of India governor Sanjay Malhotra on Wednesday asserted that the Indian economy is \u201cdoing very well\u201d and contributing more to global growth than the US, days after US President Donald Trump’s remark of India being a dead economy.<\/p>\n
RBI governor Sanjay Malhotra and US President Donald Trump, (PTI\/Reuters) <\/p>\n
“We are contributing about 18%, which is more than the US where the contribution is expected to be much less \u2013 about 11% or something. We are doing very well and we will continue to improve further,” Sanjay Malhotra said, replying to a question on Trump’s recent comments, news agency PTI reported.<\/p>\n
Also Read | 25% US tariffs, ‘dead economy\u2019: How Donald Trump doubled down on India in 24 hours<\/a><\/p>\n India is expected to grow 6.5%, as against the International Monetary Fund’s (IMF’s) estimate of about 3% global growth in 2025, Malhotra told reporters at the central bank headquarters in New Delhi.<\/p>\n Malhotra said the aspirational growth rate for India should be more than 6.5%, which the RBI is projecting for FY25, and added that the country has grown at a yearly average of 7.8% in the past.<\/p>\n The RBI on Wednesday kept the key repo rate unchanged at 5.50%, <\/a>as rising trade tensions with United States President Donald Trump added a new layer of uncertainty to the economic outlook.<\/p>\n Also Read | Trump reacts to India citing US trade with Russia amid tariff threat: ‘Don’t know…’<\/a><\/p>\n The RBI move came after a unanimous vote by the central bank’s six-member Monetary Policy Committee (MPC), which opted to hold the repurchase rate steady after a surprise 50-basis-point cut in June \u2014 the third since February.<\/p>\n Malhotra addressed concerns over Donald Trump\u2019s escalating threats to impose higher tariffs on Indian imports due to New Delhi\u2019s continued purchases of Russian crude oil.<\/p>\n \u201cWe don’t see a major impact of US tariffs on the Indian economy unless there is a retaliatory tariff,\u201d Sanjay Malhotra said, adding, \u201cWe are hopeful that we will have an amicable solution.\u201d<\/p>\n Malhotra acknowledged the evolving global trade landscape but expressed confidence in India\u2019s economic trajectory.<\/p>\n \u201cGlobal trade challenges remain, but the Indian economy holds bright prospects in the changing world order. We have taken decisive and forward-looking measures to support growth,\u201d he said.<\/p>\n India\u2019s robust domestic demand, a forecast of above-average monsoon rains, and continued recovery in agriculture and rural consumption are expected to support GDP growth in the coming quarters.<\/p>\n However, Trump’s tariff rhetoric has heightened trade tensions. On Tuesday, the US President announced plans to “substantially” increase duties<\/a> on Indian goods, adding to an earlier decision to raise tariffs from 10% to 25%, set to take effect on Thursday. He also warned of a separate penalty over India\u2019s purchases of Russian military hardware and oil.<\/p>\n