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New Delhi: Amid the US-India tariff row, Reserve Bank of India (RBI) Governor Sanjay Malhotra on Tuesday said that we don't see a major impact of US tariff (on economy) unless you have retaliatory tariff.
Addressing a post-monetary policy media interaction, Malhotra said the central bank is taking all necessary steps to support economic growth amid geopolitical tensions.
"We will continue to do whatever is required to be done in such a scenario. Of course, trade negotiations are still continuing. We are hopeful that we will have an amicable solution," he said during a post-monetary policy media interaction.
RBI continues to monitor macroeconomic conditions on a policy-to-policy basis and take appropriate steps accordingly, he added.
"We will not be found wanting in whatever is required to provide the right balance of price stability and economic growth for the development of our country," he said.
In an attempt to support growth, the RBI governor informed that the central banking authority has taken several steps not only on the monetary policy or liquidity side but on the prudential regulation side.
Commenting on the Foreign Exchange Management Act, Malhotra said that a draft has been prepared which would be released soon. It will help to ease doing businesses and ease international trade, he said. His statement assumed importance as India recently sealed a comprehensive trade pact with the UK, the UAE, and Australia.
Notably, India is engaged in trade negotiations with several countries, including the US, the European Union, Oman, and New Zealand.
The RBI governor assured that the country possesses comfortable foreign exchange reserves, which can manage 11 months of import.
Expressing his views on the bad loans situation, RBI governor said the Non Performing Assets (NPA) situation in the banking system is satisfactory with gross NPA at 2.2 per cent while net NPA is at 0.5-0.6 per cent.
