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Rangarajan says tariffs, conflicts force policy rethink
Former RBI governor C Rangarajan has said India must rethink its economic policies as tariffs and geopolitical conflicts shake the global order. Speaking at Stella Maris College in Chennai, he argued that…
The Story in Brief
Former RBI governor C Rangarajan has said India must rethink its economic policies as tariffs and geopolitical conflicts shake the global order. Speaking at Stella Maris College in Chennai, he argued that in critical areas like defence, semiconductor production, and AI adaptation, India should boost domestic output even if that means bending liberalisation rules.
“We are breaking the rules of liberalisation, but that is what we have to do if the total global situation changes,” said the former chairman of the Economic Advisory Council to the Prime Minister. He delivered the lecture marking 35 years of India’s New Economic Policy.
The Indian Opinion
The narrative that globalisation's rules are unbreakable takes another hit. Rangarajan, no radical, admits India must bend them for defence, chips, and AI. Critics will call it protectionism, but calling it a 'rethink' avoids the question: will this be a strategic, time-bound pivot or a drift into import substitution? The test will be whether tariffs come down once domestic capacity is real.
Source: thehindu.com
This story was synthesised by AI from the source linked above.
