Overview

• Governor Sanjay Malhotra said the central bank will deploy additional measures, including sector‑specific support and liquidity, if the new 50% US tariffs weigh on growth once they take effect on August 27.
• He noted that roughly 45% of export items lie outside the tariff net, while gems and jewellery, textiles, apparel, shrimps and many MSMEs could face pressure, and he expressed hope that trade talks will limit the damage.
• The RBI has cut the repo rate by 100 basis points since February and kept policy on hold in August to assess tariff risks as it balances price stability with safeguarding growth.
• Officials are examining ways to expand bank credit, including to sunrise sectors, alongside tighter oversight of banks and NBFCs and a planned regulatory review cell to periodically reassess rules.
• Malhotra urged banks and corporates to reignite an investment cycle, as an MPC external member flagged that tax and GST changes may lift consumption even as tariff uncertainty could delay near‑term capex decisions.