Be careful with US trade deals, warns Raghuram Rajan
Former RBI Governor Raghuram Rajan has a heads-up for India: be "very careful and clever" when making trade deals with the US, especially to protect local producers from cheap, subsidized imports.
He's urging negotiators to keep sensitive sectors safe while discussing tariffs.
US wants India to lower duties on certain goods
India and the US have been deep in talks over a new trade agreement, but things are tense.
The US wants India to lower duties on steel, aluminum, and cars—and has slapped higher tariffs on Indian goods.
Meanwhile, India is hesitant to open up areas like agriculture and dairy because those industries get big subsidies in countries like the US.
Focus on foreign investment to boost local industries
Rajan thinks instead of just importing more, India should focus on bringing in foreign investment to boost local industries—like dairy—so value is added at home.
He also believes that smart tariff reforms could help attract supply chains without risking key sectors.
Even with global tariff drama, he's optimistic about India's growth staying steady around 6-7%.