The Reserve Bank of India (RBI) is planning consultations with industry stakeholders to assess the sectoral impact of the 50% tariffs recently imposed by the United States. The discussions are expected to take place in September, ahead of the next meeting of the monetary policy committee.
The proposed consultations come as punitive tariffs on Indian exports take effect, potentially impacting around 55% of the country’s US $ 48-billion worth of annual shipments to the US. Labour-intensive sectors—including textiles and apparel—are anticipated to be among the worst affected.
An official familiar with the matter said the consultations were being planned against the backdrop of an uncertain global economic environment shaped by tariffs and evolving trade policies. According to the official, the record-high tariffs expose India’s key export categories to a pricing disadvantage of 30–35% when compared with producers in countries such as China, Vietnam, Cambodia, the Philippines, and others in Southeast and South Asia. The official also noted that the RBI and industry leaders are likely to review the India-UK Comprehensive Economic and Trade Agreement (CETA) as part of these discussions.
The monetary policy committee of the RBI is scheduled to meet between 29th September and 1st October. RBI Governor Sanjay Malhotra said the central bank was prepared to cushion the economy against the fallout of Washington’s tariff hike. He also highlighted the central bank’s efforts to promote trade in local currencies as part of the push to internationalise the rupee. Malhotra added that while 45% of India’s merchandise exports are not covered by the tariff regime, sectors such as gems and jewellery, textiles, shrimp cultivation, and MSMEs could face significant challenges.
