The US tariff policy has created a stir worldwide and its impact on the global industry is clearly visible. Meanwhile, former RBI Governor C. Rangarajan says that President Trump’s economic policies are not only affecting global trade, but can also prove to be suicide for the US.
Addressing the 15th convocation of the ‘ICFAI Foundation for Higher Education’ on Friday, Rangarajan said that some policies of Trump have stopped global trade trends. Without naming ‘BRICS’, he said that the rise of various groups with free trade is inevitable, but the final goal should be a world where trade is more open. He hoped that American policy makers would work wisely and change suicidal policies.
Trump’s policy is fatal to America
He said that India has been the most affected by this situation. India’s development is uneven, as Maharashtra, Tamil Nadu, Karnataka, Uttar Pradesh, Gujarat and West Bengal contribute 52 percent to national income, while the remaining states contribute 48 percent. Giving an example, Rangarajan said that Goa’s per capita income is 10 times more than Bihar.
The former RBI Governor said that to make India a developed nation, per capita income would have to be taken up to US $ 18,000. For this, major states will have to achieve a relatively high growth rate. For example, 8.71 percent for Tamil Nadu, 9.63 percent for Gujarat, 8.77 percent for Karnataka and 9.53 percent for Maharashtra are expected. At the same time, Bihar and Uttar Pradesh will require a growth rate of 17.4 percent and 14.5 percent respectively.
India is the most affected
He said that the concept of developed India is not just a statistical goal, but a journey of comprehensive changes, which requires collective efforts of both the government and society. For this, focus will have to be paid to five focus areas – an increase of two percent in investment rates, adopting new technologies, promoting labor -dominated areas, expanding social infrastructure such as health and education and strengthening the quality and effectiveness of higher education.
