Balancing Self-Sufficiency and Efficiency: Insights from Former RBI Governor

Former RBI Governor C Rangarajan emphasized the need for efficient import substitution and a multidimensional development strategy to foster economic growth. Speaking at ICFAI's convocation, he highlighted the critical role of job creation, technological absorption, and the importance of strengthening higher education's quality and effectiveness in India.

In light of supply disruptions caused by the Russian-Ukrainian conflict, many nations, including India, have been reconsidering their approach to self-sufficiency regarding essential imports. However, former RBI Governor C Rangarajan cautions that India's 'Atmanirbhar' initiative should not devolve into inefficient import substitution.

Speaking at the 14th convocation of the ICFAI Foundation for Higher Education, Rangarajan advised that India's development strategy must be multifaceted. This includes raising the investment rate, focusing on agriculture, manufacturing, and services, adopting new technologies, and promoting employment-friendly sectors.

Rangarajan warned against costly import substitution, advocating for efficient alternatives instead. He also addressed the issue of jobless growth, stressing that job creation poses significant challenges globally. Furthermore, he underscored the need to strengthen higher education in terms of access, equity, and quality to achieve sustainable development.