RBI Ex-Governor Urges Efficient Import Strategy Amid Global Disruptions

Former RBI Governor C Rangarajan emphasized efficient import substitution over outright self-sufficiency at the ICFAI convocation. He highlighted India's need for multidimensional development strategies involving agriculture, manufacturing, and services. He also stressed job creation, higher education reforms, and achieving 6-7% annual growth for better per capita income by 2024.

Former RBI Governor C Rangarajan has called for efficient import substitution policies to avoid self-sufficiency pitfalls during supply disruptions caused by the Russian-Ukrainian war.

Speaking at the 14th convocation of the ICFAI Foundation For Higher Education, Rangarajan stressed the need for multidimensional economic strategies that include raising investment rates, focusing on agriculture, manufacturing, and services, and adopting new technologies. He warned against old-style import substitution, which he believes is detrimental to the nation's growth.

Rangarajan also highlighted the importance of job creation and the need for higher education reforms, specifically concerning access, equity, and quality. To achieve a per capita income of over USD 13,000 by 2024, India needs an average annual growth rate of 6-7%.