✎ C. Rangarajan advocates for a policy rethink, emphasizing domestic production in critical sectors like defence and AI, due to global tariffs and conflicts, even if it deviates from traditional liberalisation principles.
Relevance for Banking, SSC & RBI Grade B exams: Polity & Governance
Former RBI Governor C. Rangarajan has emphasized the need for a policy rethink amid rising global conflicts and increasing tariff imposition, which pose significant challenges to India’s economic liberalization. Speaking at a lecture marking 35 years of India’s New Economic Policy, he highlighted how geopolitical tensions and protectionist trade measures are disrupting supply chains and inflating costs for critical inputs like defence goods, semiconductor chips, and AI-related technologies. Rangarajan argued that while these shifts may deviate from traditional liberalization principles, India must prioritize domestic production in strategic sectors to mitigate vulnerabilities arising from external shocks. This perspective is particularly relevant for banking and SSC aspirants, as it underscores the interplay between geopolitics and economic policy, a theme often tested in exams like the RBI Grade B and SSC CGL, where questions on global trade dynamics and fiscal measures frequently appear.
The remarks also shed light on India’s economic resilience, with Rangarajan attributing current challenges not to domestic weaknesses but to external disruptions. For banking exams like IBPS PO and SBI Clerk, this aligns with the syllabus on governance and economic reforms, where candidates are expected to analyze how policy adjustments—such as tariff reductions or strategic subsidies—can address supply chain bottlenecks. Similarly, for RBI Grade B aspirants, understanding the role of institutions like the RBI in managing such crises, including through monetary policy tools, is crucial. The lecture’s focus on adapting to a changing global order provides a real-world context for theoretical concepts in polity and governance, making it a valuable case study for exam preparation.
Source: The Hindu
Generated by AanyaAi for educational purpose.
