Need more bilateral trade pacts: RBI Governor after India-UK FTA
What's the story
Reserve Bank of India (RBI) Governor Sanjay Malhotra has welcomed the recently signed Free Trade Agreement (FTA) with the UK. He believes that the deal will benefit several sectors of the Indian economy. Speaking at a summit in Mumbai, Malhotra stressed the need for more such bilateral pacts in light of declining multilateralism across countries.
Trade strategy
Negotiations for FTA with the US in 'advanced stages'
Malhotra said, "Hopefully it (FTA with UK) should help us... that is the way going forward now, because unfortunately multilateralism seems to have taken a back seat." He added that the agreement will benefit various sectors in India's manufacturing and services industries. The RBI Governor also noted that negotiations for an FTA with the US are in "advanced stages."
Market expansion
India-UK FTA signed during PM Modi's visit to UK
The India-UK FTA was signed during Prime Minister Narendra Modi's two-day visit to the UK. The deal, which has been in the works for several years, will open up markets for both countries across goods and services. Malhotra said that there are many more such pacts at various stages of negotiation, highlighting India's proactive approach toward international trade agreements.
Central bank autonomy
Malhotra defends US Fed Chair
Along with his views on FTAs, Malhotra also defended US Federal Reserve Chair Jerome Powell's efforts to maintain the independence of the central bank. This comes amid public criticism from US President Donald Trump over its policies. "He (Powell) is doing a very good job. Maintaining independence of the central bank is very important. I think he has done a commendable job," Malhotra said.