Wed Aug 20 18:47:04 UTC 2025: ## Summary:

India’s Monetary Policy Committee (MPC) acknowledges the negative impact of global trade tensions and tariffs on economic growth. However, they maintain a positive outlook, citing the resilience of the Indian economy and a favorable inflation forecast.

## News Article:

**Indian Central Bank Worried About Global Trade Wars, But Remains Optimistic on Economy**

**MUMBAI, INDIA** – Members of India’s Monetary Policy Committee (MPC) have expressed concerns regarding the evolving risks stemming from global trade tensions and tariffs, identifying them as a significant hindrance to economic growth. However, the committee maintains a generally optimistic outlook for the Indian economy, highlighting its resilience and projecting a benign inflation environment.

In recent discussions, MPC members pinpointed the escalating global trade disputes, particularly the imposition of tariffs, as a key factor that could potentially impede India’s growth trajectory. These concerns reflect anxieties over potential disruptions to global supply chains and a slowdown in international trade volumes.

Despite these headwinds, the MPC remains confident in the fundamental strength of the Indian economy. Their assessment points to a resilient domestic market capable of weathering the global economic uncertainty. Furthermore, the committee highlighted the favorable outlook for inflation, suggesting that the central bank will have room to maneuver in its monetary policy decisions should economic conditions warrant further stimulus.

This balanced assessment from the MPC signals a cautious approach, acknowledging the external threats while simultaneously emphasizing the underlying strength of the Indian economy. Investors and economists will be closely watching the MPC’s future decisions as they navigate the complexities of a rapidly evolving global economic landscape.

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