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Us-China Trade War: Former Reserve Bank Governor Raghuram Rajan believes that at this time, India has a big chance to benefit from the current situation, which should not be left. In an interview to India Today, he said that if India takes the right step of commercial uncertainty arising from the ongoing tension between the two global heels, then there can be tremendous benefit.
Rajan insisted on the fact that at this time we should talk on trade talks, especially America, except for the old stand, so that investment can be promoted and help to Indian exporters. The former RBI governor’s comment has come at a time when there is a tremendous economic pressure on the whole world due to the tariff declaration of US President Donald Trump.
India takes advantage of opportunity
Raghuram Rajan warned that the US can also bring its economy to Baptari with this step. He said that unemployment rate had come to a lower level and inflation was decreasing. The rate reduction was being considered by the Federal Bank. But a sudden shock has created a new challenge.
He said that a country like Vietnam will have a big impact, because he used to export a lot in America. But, its impact on India is going to be very limited, because India’s economy is very big.
Rajan further said that India’s exports to United States have been very low compared to GDP. Yes, it is going to have some effect which will be harmful. But this will not change our economy but will increase our economic speed.
Less impact than GDP
The former RBI governor stressed this and said that India should not ruin this opportunity. He said that this is also a big opportunity for India to reduce its tariff not only on America but other countries. Some economists here had expressed concern over the growing tariff rates of India during the last few years, this is the occasion when it should be reduced. He said that India has this opportunity to improve the policy of trade and investment except for conservationist policy.
