The Reserve Bank of India (RBI) kept its key repo rate steady at 5.50% on Wednesday, in line with expectations, as policymakers waited to see the impact of recent rate cuts and assessed risks from higher-than-expected U.

Uncertainties surrounding U.S. trade policy continue to cast a shadow over the Indian economy’s outlook.

India's economy is expected to grow by around 6.5% in the current fiscal year but a 25% U.S. tariff on imports from India could shave off up to 40 basis points from that level, while stunting business investment, economists have said.