HYD: Rangarajan calls for reducing import dependence, strengthening India’s economic resilience
Hyderabad, Oct 31 (TNT): Former RBI Governor and ICFAI Foundation for Higher Education (IFHE) Chancellor Dr C. Rangarajan on Saturday called for strengthening India’s domestic manufacturing capabilities, building strategic reserves of critical commodities and reducing dependence on imported energy to protect the economy from growing global uncertainties.
Addressing the 16th convocation of IFHE here, he said ‘Make in India’ should focus on producing goods for international markets while maintaining global competitiveness, rather than resorting to indiscriminate import substitution.
Referring to unilateral tariff measures by the United States and the US-Iran conflict, which disrupted shipping through the Strait of Hormuz, Rangarajan said the two key pillars of the international trading system — consensus on tariff rates and free movement of goods through sea routes — had been weakened.
He observed that the world was moving towards an era of “might is right” and stressed the need for India to recalibrate its development strategy to meet emerging geopolitical and economic challenges.
He called for greater adoption of emerging technologies, including artificial intelligence, structural reforms, increased investment in physical and social infrastructure, and a stronger focus on knowledge and innovation.
Pointing to global innovation rankings, he said South Korea and China were placed fourth and tenth respectively, while India ranked 38th, highlighting the need to improve its innovation ecosystem.
In the absence of an effective multilateral trading system, he favoured free trade agreements with key trading partners, describing them as a “second-best solution”.
Describing the graduating students as the “incoming leaders of change”, Rangarajan said they would have an important role in shaping the country’s future.
TNT TS
