Team siliconindia

• RBI Governor Sanjay Malhotra welcomed the India-UK FTA, stating it will boost manufacturing and services sectors.
• Malhotra stressed the need for more bilateral trade pacts, as multilateralism is losing relevance; talks with the US are in advanced stages.
• He praised US Fed Chair Jerome Powell, supporting his efforts to maintain central bank independence amid political pressure.

Reserve Bank of India Governor Sanjay Malhotra welcomed the recently signed Free Trade Agreement (FTA) between India and the United Kingdom, calling it a significant step that will benefit multiple sectors of the Indian economy.

Speaking at the FE Modern BFSI Summit in Mumbai, Malhotra highlighted the shift away from multilateralism in global trade, stressing the need for more bilateral agreements to bolster India's economic position. “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 said.

Malhotra emphasized that the India-UK FTA will aid growth across both manufacturing and services sectors. He also noted that negotiations for a similar agreement with the United States are in 'advanced stages', and added that many more trade pacts are currently under negotiation.

The India-UK trade agreement, signed during Prime Minister Narendra Modi’s two-day visit to the UK, has been in the pipeline for several years. It aims to enhance trade and investment flows by opening up markets in goods and services across both nations.

Also Read: RBI Warns of Inflation Risks from Rising Oil Import Dependence

In a separate remark, Malhotra extended support to US Federal Reserve Chair Jerome Powell amid political pressure from former President Donald Trump. “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, underscoring the importance of central bank autonomy in the face of political scrutiny.

The RBI governor’s comments mark the central bank's first official response to the landmark UK trade deal and reflect India’s pivot toward strengthening strategic bilateral economic ties.