RBI Governor Applauds UK-India Free Trade Agreement

Reserve Bank Governor Sanjay Malhotra has expressed strong support for the recently signed free trade agreement (FTA) between India and the United Kingdom. Speaking at the FE Modern BFSI Summit, Malhotra noted that the FTA is expected to boost multiple sectors of the Indian economy. This agreement marks the country's strategic shift towards bilateral pacts amid declining multilateral engagements.

Malhotra underscored the importance of such trade agreements, particularly in light of the current global challenges where multilateralism seems to have receded. He expressed optimism that similar discussions with the United States are progressing towards advanced stages. These bilateral trade agreements are deemed essential to invigorate India's manufacturing and service sectors.

The free trade agreement comes as a significant achievement following years of negotiations, finalized during Prime Minister Narendra Modi's visit to the UK. Additionally, Malhotra expressed solid backing for US Federal Reserve Chair Jerome Powell's efforts to maintain the central bank's independence, amidst public criticism from President Donald Trump.

(With inputs from agencies.)