New Delhi, April 8 -- It has only been a few days since the 47th president of the US, Donald Trump, set loose an economic tsunami by declaring what he called "kind reciprocal tariffs" that are anything but 'kind' to the rest of the world. Big or small, friend or foe, no country was spared.

While China promptly announced a retaliatory tariff of 34% and stock market indices crashed in response, the central banks of most major targets are still watching the rapidly unfolding situation. The Indian stock market, which seemed less skittish than others last week, took a hard tumble on Monday, just as the Reserve Bank of India's (RBI) Monetary Policy Committee (MPC) began its three-day policy review.

In such a scenario, how should the panel res...