What will happen to economy if India-US FTA doesn't happen? RBI Governor reveals

"The impact depends on to what extent tariffs are going to be applied. So, it's premature to answer. But obviously it will have some negative impact," Malhotra said during the post-monetary policy press conference in response to a query on the impact on the economy if the trade deal with the US fails to materialise. However, India has concluded or implemented a series of trade agreements in recent months, which could help diversify its export markets.