The Reserve Bank of India is more concerned about the potential impact of US-led tariffs on economic growth than on inflation, according to Governor Sanjay Malhotra.
The 20-basis point reduction in India's growth forecast reflects the cautious outlook amid the evolving global trade scenario.
Global growth estimates have been revised downward due to escalating tariffs, and the growth impact remains a greater concern for India.
To support economic activity, the RBI has cut interest rates for the second consecutive time and shifted its monetary stance to 'accommodative'.