SparX by Mukesh Bansal Former RBI Governor Exclusive: US Tariff Shock! Raghuram Rajan Calls It A 'Wake-Up Call' For India
Sep 13, 2025
Raghuram Rajan, the Former RBI Governor, shares his insights on India's economic challenges as it navigates a complex global landscape. He discusses the impact of US tariffs, questioning their effect on India’s GDP growth and job market. Rajan highlights the necessity for human capital investment and the urgent need for education reform. He also addresses the disruption caused by AI and emphasizes the importance of ambition and adaptability for the youth. His views prompt a rethink on how India can secure its economic future amidst shifting geopolitics.
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Episode notes
India Needs Strategic Flexibility
- India cannot be natural allies with China due to a long history of mistrust despite occasional cooperation.
- Preserve options and avoid over-dependence on any single country to maintain strategic flexibility.
Use Investment To Learn Manufacturing
- Welcome more Chinese investment where it transfers manufacturing know-how and state-of-the-art technology.
- Insist that market openness be two-way so India gains skills and knowledge, not just capital.
Parse High GDP Numbers Carefully
- High reported GDP growth can mask weak nominal growth and questionable inflation measurement.
- Slow nominal GDP and low measured inflation can make real growth appear stronger than underlying fundamentals.
