'Too much reliance on foreign tech can leave India exposed'
Former RBI governor Raghuram Rajan has raised concerns about India's push into artificial intelligence (AI), warning that too much reliance on foreign tech could leave the country exposed.
"There is also a lot of danger from becoming too reliant on entities that can squeeze us," he shared, pointing out India's lack of a strong local market for natural supply integration.
Rajan's recommendations for FM Sitharaman
Rajan urged Finance Minister Nirmala Sitharaman to focus on building long-term economic resilience in the upcoming Budget.
He suggested India should avoid copying China's rapid growth model—which he called unsustainable—and instead play to its strengths in services.
He also recommended investing more in people—think jobs, skills, and training—while cautioning against unsustainable growth models.
Strengthening ties with neighbors like Bangladesh, Sri Lanka, and Nepal was another key point he highlighted.