Synopsis : RBI Governor Sanjay Malhotra has welcomed the India-UK Free Trade Agreement, calling it a boost for Indian manufacturing and services. He stressed the need for more bilateral pacts amid weakening multilateralism and highlighted advanced trade talks with the US.
India's recent free trade agreement (FTA) with the UK will strengthen the country's manufacturing and services sectors, Reserve Bank Governor Sanjay Malhotra said on Friday. Speaking at the FE Modern BFSI Summit, Malhotra emphasised the importance of such bilateral pacts at a time when multilateralism has "unfortunately" taken a back seat, and stated that similar negotiations with the US are in advanced stages.
The central bank's remarks come as India and the UK signed the FTA during Prime Minister Narendra Modi’s visit to London, aiming to open markets for goods and services in both nations after years of negotiations. Malhotra stressed, “Hopefully, it should help us... this is the way forward now.”
The RBI Governor also backed US Fed Chair Jerome Powell for maintaining the Federal Reserve’s independence, even as the Fed faced public disagreements with the US President, calling Powell's work "commendable."
On crypto regulation, Malhotra reiterated that India’s government-appointed panel will consider RBI’s concerns while shaping policies. Addressing speculations around a BRICS currency, he clarified that there is no work underway for a separate BRICS currency, adding that India is focused on popularising the rupee, while acknowledging the continued dominance of the US dollar as a universal cross-border currency.
Malhotra also appreciated the Ministry of Petroleum's efforts in managing oil procurement despite sanctions on Russia, and highlighted ongoing rupee trade arrangements with the UAE and Maldives as part of India’s currency internationalisation strategy.
As India looks to deepen its global trade footprint, the RBI's endorsement of more FTAs indicates a strategic pivot towards bilateral agreements, with a clear aim to enhance economic resilience and growth amid global uncertainties.
Disclaimer :This article is for informational purposes only and does not constitute financial or investment advice.
