RBI Governor hopeful of an 'amicable solution' to US trade negotiations

Sanjay Malhotra

The Reserve Bank of India (RBI) Governor Sanjay Malhotra remains hopeful of an amicable solution of the ongoing trade negotiations, despite the US announcement of a 25 percent tariff on Indian goods.

“The trade negotiations are still continuing, we are hopeful that we will have an amicable solution,” Malhotra said while responding to a question in post policy conference.

His comments came after the US announced tariff on Indian goods and criticised India for allegedly profiteering off Russian oil amid the war in Ukraine, threatening to ‘substantially’ raise tariff on Indian imports to the United States.

In a post on Truth Social, Trump had accused India of buying ‘massive amounts’ of Russian oil and then reselling it on the open market for ‘big profit’.

On August 5, Jitin Prasada, Minister of State for Commerce and Industry told Lok Sabha in a written response that India is ‘actively involved’ in discussions for a Bilateral Trade Agreement (BTA) with the United States, with the aim to expand trade and investment and deepen the commercial relationship to promote growth, national security and job creation.

Negotiations for a trade deal between India and the US were launched in March 2025 with five rounds of talks having been held so far, the last being in July. Talks for a mini-version of a deal by August failed as divergences remained, especially on agriculture.

On the steps being taken by the government to safeguard key sectors like agriculture, Prasada said international trade negotiations allow for the inclusion of sensitive, negative, or exclusion lists - categories of goods on which limited or no tariff concessions are granted.

“In addition, in case of surge in imports and injury to the domestic industry, a country is allowed to take recourse to trade remedial measures such as anti-dumping and safeguards on imports within the periods as mutually agreed to by the parties under FTAs,” Prasada said on August 5.