India can weather global challenges: RBI chief

India's economic fundamentals remain strong and its foreign exchange reserves, low inflation and a narrow current account deficit are buffers against risks from US tariff hikes, its central bank chief said on Friday.

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Reserve Bank of India Governor Sanjay Malhotra told a conference that countries around the world were experiencing fiscal stress. In comparison, and despite external challenges, "India stands as an anchor of stability in a volatile world," he said.

US President Donald Trump doubled tariffs on Indian goods to as much as 50% from August 27 over New Delhi's continued imports of Russian oil.

The levy is among the highest on US trading partners alongside Brazil, and economists say the move could hurt exports including textiles, leather goods and chemicals.

Malhotra said that flexibility and swift policy responses will be crucial as global uncertainties linger. "You can't control the storm, but you can certainly steer the ship," he told the Economic Conclave in New Delhi, an annual economic conference organised by the finance ministry.

The RBI kept its policy rate unchanged at 5.5% on Wednesday, while signalling room to cut rates in December as it gauges the impact of tariffs on growth.

The central bank had cut the repo rate by a total of 100 basis points in the first half of 2025, but paused at its previous meeting in August.