Navigating Trade Tensions: India's Strategic Moves in Global Markets

Former RBI Governor Raghuram Rajan emphasizes the need for careful negotiation by India in trade agreements, particularly with the US. The focus is on safeguarding the agriculture sector from heavily subsidized competition while exploring opportunities for increased foreign investment in sectors like dairy and manufacturing.

India faces a critical juncture as it navigates trade agreements with the United States, particularly concerning its agriculture sector. Former Reserve Bank of India Governor, Raghuram Rajan, stressed the importance of strategic negotiations to protect domestic industries from the heavily subsidized competition that developed countries present.

Speaking to PTI Videos, Rajan highlighted the current economic growth range of 6-7 percent, acknowledging the impact of global trade uncertainties. He underscored the challenges in safeguarding local agricultural producers and urged the government to use clever diplomacy in ongoing talks amid US demands for concessions.

Rajan pointed to potential benefits for India if tariffs imposed by the US on other countries divert manufacturing opportunities its way. With international trade dynamics in play, he's optimistic about India's long-term opportunities despite immediate challenges in sectors like dairy and automobile manufacturing.

(With inputs from agencies.)