US tariffs on Russian oil: Rajan's advice to India
Former RBI Governor Raghuram Rajan thinks it's time for India to take a fresh look at buying Russian oil, especially after the US slapped a hefty 50% tariff on these imports recently.
While Indian oil refiners might see bigger profits, Rajan warns that small exporters could get hit hard by these new costs.
He calls this a "wake-up call" for India to avoid relying too much on any one country.
Rajan's message to India
Rajan is pushing for India to diversify its trade partners and focus more on self-reliance, especially with global tensions rising and trade getting more political.
Even though the US wants India to cut back on Russian oil, leaders like S Jaishankar have pointed out that Europe still buys from Russia too.
For now, India is likely to keep importing some Russian oil—energy security comes first—but Rajan's message is clear: India should not become dependent on any single country to a large extent.