RBI Governor: High US Tariffs Have Reversed Years Of Global Trade Integration

RBI Governor Sanjay Malhotra, addressing the Kautilya Economic Conclave 2025 in New Delhi, highlighted the challenges posed by shifting global trade policies. he pointed to sharp U-turns in trade strategy and the imposition of high tariffs that have reversed years of economic integration. Malhotra cautioned that while global growth has so far remained resilient despite these restrictions, diverging growth trajectories and protectionist measures could permanently dent potential output in some economies. He warned that the current trade policy environment, coupled with fiscal strains across nations, poses significant risks to long-term global growth stability.