RBI on Wednesday kept its policy interest rate unchanged, as policymakers weighed the risks posed by changing global trade policies and the uncertainties surrounding the potential for higher tariffs by the US President Donald Trump's administration.

Governor Sanjay Malhotra expressed confidence in India's economic prospects despite concerns over tariffs imposed by President Trump.

India’s foreign exchange reserves fell by more than $9 billion last week, likely reflecting the central bank's efforts to shore up the rupee amid U.S. threats of steep tariffs on the Asian nation's exports.