RBI Bulletin: US Tariffs To Hit Net External Demand, But GST Cuts Will Mitigate Adverse Impact

The RBI bulletin stressed that the Indian economy "has displayed resilience" amidst broader global uncertainty and weak external demand. (Photo source: NDTV Profit) Show Quick Read Summary is AI Generated. Newsroom Reviewed

The Reserve Bank of India, in its monthly bulletin, acknowledged the potential adverse impact of US tariffs on India's merchandise exports, but highlighted the support offered to the economy by the recent rationalisation in goods and services tax rates.

"The high US tariffs, unless resolved, could reduce India’s merchandise exports to the largest export destination, adversely impacting net external demand," stated the bulletin, published on Monday.

However, the recent structural reforms, including the implementation of GST 2.0, are expected to boost domestic dem