AI, Israel-Iran conflict affecting markets: ex-RBI Governor Rajan
Raghuram Rajan, ex-RBI Governor, says the recent ups and downs in the markets are mainly due to two things: rapid changes from AI and the ongoing Israel-Iran conflict.
He told Businessline that both have made investors nervous lately.
AI and Israel-Iran conflict affect markets
AI is moving fast, especially in software. After warnings about potential pressure on revenues at Indian IT firms, people started worrying that automation could replace jobs in coding and customer support.
At the same time, tensions between Israel and Iran are making everyone anxious about oil supplies through a key shipping route—which could mean higher prices and other economic headaches for countries like India.
Focus on reskilling people, not just tech subsidies: Rajan
Rajan isn't too worried about AI taking over everything just yet.
He called some fears "science fiction" and pointed out that there's still plenty of demand for services outside pure tech—especially since not every company is quick to adopt new tools.
His advice? Focus on reskilling people so they can keep up with these changes instead of just chasing tech subsidies.