A few days after US President Donald Trump called India and Russia’s economies a dead economy, RBI Governor Sanjay Malhotra has retaliated by highlighting India’s economic strength and future capacity. He said that the Indian economy has bright possibilities. Announcing the monetary policy, Malhotra said that in the changing world system in the medium period, the Indian economy has bright possibilities on the strength of its inherent powers. The comment comes at a time when the Reserve Bank of India has kept the repo rate unchanged at 5.5 percent, while the pressure on the rupee continues after Trump’s threat on Indian goods. The rupee fell 16 paise on Tuesday after a warning of new charges by the US President.

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Governor Malhotra said that until the counter -duty situation is created, we do not see the possibility of a greater impact of the US fee on the economy. The position of non -executed assets (NPAs) in the banking system is satisfactory; Pure NPA 0.5 to 0.6 percent. Policy maker US President Donald Trump is currently assessing the risks related to the risks arising from the trade policies and the possibility of high fees. The six-member Monetary Policy Committee (MPC) headed by RBI Governor Sanjay Malhotra decided to keep the repo rate unchanged by consensus at 5.5 percent. Along with this, RBI has also kept the monetary policy attitude neutral. This means that the central bank will remain flexible for adjustment in the policy rate according to the economic situation.

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In a post on Truth Social, Trump said, “I don’t mind, they can drop their dead economies together.” He accused India of imposing the world’s tallest tariffs and damaging the US-India trade. Earlier, on Tuesday (August 5), Trump had criticized India, describing it as a good business partner and repeated his plan to increase the tariff on Indian goods. Talking to CNBC, Trump said he would put new tariffs on India within the next 24 hours. The US has already imposed a 25 percent tariff rate on some Indian imports, and new measures are expected to be implemented from August 7.