New Delhi, Sept. 28 -- Global uncertainties have escalated, complicating the Reserve Bank of India's (RBI's) monetary policy decision. Even with inflation muted, there is no respite for the central bank, as growth outlook has been dampened by US tariffs. What further complicates the matter is the uncertainty around US trade policy and the likelihood of a trade deal. India's domestic demand indicators have been improving, and policy support in the form of GST rate cut will further boost domestic demand. In these uncertain times, the central bank should adopt a wait and watch policy to get further clarity on growth outlook.

With a 50% duty imposed by the US, India has become one of the highest tariffed nations. Exports to the US constitute...