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Raghuram Rajan said that being overly dependent on a single country can be a threat to India and this is a serious warning. He said that in today’s global environment, trade, investment and finance are being used as weapons, so India will have to take steps very thoughtfully.
Former RBI Governor Raghuram Rajan
New Delhi: US President Donald Trump has decided to impose a 50 percent tariff on goods imported from India. This is likely to cause huge losses to important industries like textiles, diamonds and shrimp. Regarding this tariff, former Reserve Bank of India governor and well-known economist Raghuram Rajan has termed it as 'extremely worrying'.
Raghuram Rajan said that being overly dependent on a single country can be a threat to India and this is a serious warning. He said that in today's global environment, trade, investment and finance are being used as weapons, so India will have to take steps very thoughtfully.
US-India trade war escalates as Donald Trump levies 50% tariff
Raghuram Rajan said that in the present times, trade has become like a weapon. He further said, "This is an alert. We should not depend too much on any country. We also have to look towards the East, Europe and Africa. It is important to maintain relations with America, but at the same time such reforms should be implemented so that our youth can get employment and a growth rate of 8 to 8.5 percent can be achieved."
- US slaps 50% tariff on Indian exports, impacting key sectors like textiles, diamonds, and shrimp.
- Former RBI Governor Raghuram Rajan warns this overdependence on one trade partner is ‘highly concerning’ and urges India to diversify trade and reconsider Russian oil imports.… pic.twitter.com/PkYWEr6Cg7— Dynamite News (@DynamiteNews_) August 28, 2025
From last Wednesday, America has started imposing a tariff of 50 percent on goods imported from India. This also includes an additional penalty of 25 percent on buying oil from Russia. Although China and Europe are not facing such a big tariff, India is facing this heavy tariff due to buying oil from Russia.
The former RBI Governor suggested that India should reconsider its policy of buying oil from Russia. We have to understand who is benefiting and who is losing in this situation. Refiners are making good profits on this, but exporters are bearing the cost due to the tariff. If the profits are not much then we should think whether we should continue this import or not.
How will the USA deal with the collateral damage it will endure by levying 50% tariffs on India?
