By Nitin Waghela

Copyright republicworld

While announcing the RBI MPC outcome, RBI Governor Sanjay Malhotra on Wednesday, October 1, said that the next-generation goods and services tax (GST) reforms won’t completely offset Trump’s 50 per cent tariffs imposed on India.”The implementation of several growth-inducing structural reforms, many of which were announced by the PM on 15th August, including the streamlining of GST, is expected to offset some of the adverse effects of the external headwinds,” he said.”Ongoing tariff and trade policy uncertainties will impact external demand, prolonged geopolitical tensions and volatility in international financial markets, caused by the risk of sentiments of investors, pose downside risks to the growth outlook,” he said.Further the RBI MPC chairperson shared that the “real GDP growth for this year is now projected at 6.8 per cent”.Amit Suri, Founder of AUM Wealth, said, “The upgrade in GPD growth to 6.8% highlights the resilience of India’s economy while the moderation in inflation metrics are evidence of policy effectiveness for price stability. For investors, a stable policy environment is positive, particularly for rate-sensitive sectors, such as real estate, automobiles, and banking.””This is a revision from our earlier forecast of 6.5%; now it is projected at 7%, Q3 at 6.4%, and Q4 at 6.2%. Real GDP growth for Q1 next year is projected at 6.4%. The risks are evenly balanced,” the RBI Governor noted. Meanwhile, the MPC unanimously decided to “keep the repo rate unchanged” at 5.5 per cent and retained the “neutral” stance. Additionally, the RBI Governor also announced several key proposals focused on improving flow of credit, simplifying foreign exchange management, internationalization of the Indian Rupee, and promoting ease of doing business.