India's Economic Resilience Amid Global Tariff Wars

India's Finance Minister Nirmala Sitharaman highlighted challenges faced by India's economy due to U.S. trade tariffs. The Reserve Bank of India cut interest rates to stimulate growth. Sitharaman expressed optimism about a potential UK-India free trade deal during the UK-India economic dialogue.

India's Finance Minister Nirmala Sitharaman addressed the impact of U.S. trade tariffs on India's economy, underscoring the need for support from the Reserve Bank of India and government. Her remarks came after the central bank's decision to cut interest rates to invigorate sluggish growth.

On Wednesday, the RBI's Monetary Policy Committee reduced its repo rate by 25 basis points for the second consecutive time, bringing it down to 6.00%. The cuts aim to counteract the economic slowdown prompted by shifts in U.S. trade policy under President Donald Trump, including a 26% tariff on Indian exports.

During a visit to London for the 13th UK-India economic and financial dialogue, Sitharaman expressed her satisfaction with the rate cut, emphasizing the significance of economic growth amid global uncertainty. She indicated that sustaining growth through domestic demand was feasible and remained optimistic about finalizing a free trade agreement between the UK and India.

(With inputs from agencies.)