The possibility of global protectionist measures could hamper India's growth prospects as it may lead to currency wars, the Reserve Bank of India said on Wednesday. Warning that the world is entering a currency war, which has been spawned by the trade wars between the three largest economies, RBI Governor Urjit Patel said at a press conference after a meeting of its monetary policy committee, “The trade wars have evolved into tariff wars and now we are possibly at the beginning of currency wars. Given this, we have to ensure that we run a tight ship and

we maximise our chances of ensuring macroeconomic stability and ensure

a 7-7.5 per cent growth going forward.”

Noting that the turbulence facing the global economy was likely to continue, Patel said, “We already had a few months of turbulence behind us and it looks like that this is likely to continue for how long I don't know. But the trade skirmishes evolved into tariff wars and now we are possibly at the beginning of currency wars.”

“We do have things that are in our favour and if we continue along that path we ensure that we don't add to the global risk profile that would adversely affect us," Patel said.

Lately, a slew of trade protectionist measures initiated by major economies led by the US has impacted international business sentiment and resulted in retaliatory tariff wars. On July 7, Union Commerce and Industry Minister Suresh Prabhu said global trade is passing through "challenging times" and the existence of World Trade Organisation (WTO) was under threat.