Former Raguram Rajan governor warned that Tide Global might turn against the United States, with doubts escalating about its leadership and the direction of politics, and an emerging opportunity for India to progress.
In an interview with CNBC-TV18, Rajan pointed to a sharp shift in world feelings since the beginning of the year.
He said: “Everything else moves up, and the United States is moving down,” citing the growing international suspicion of American rule.
“The administration is trying to do one thing, the courts are trying to do something else … there is a lot of fermentation in the United States.”
Just months ago, Rajan noted that the elite forums like Davos were still supported by the faithful American. But after five months, this optimism stumbled. While acknowledged that the country’s innovation and energy is still strong, they said they are now at a “somewhat weaker level.”
On the other hand, Rajan believes that India can be on the threshold of a transformative moment. He said that with the reshaping of global supply chains, “the moment of India” could be if the country is playing its cards properly.
Rajan, a professor at the College of Business Administration at the University of Chicago, called on Indian policy makers to overcome subsidies and create an attractive environment for foreign investors.
The “Red Carpet Look”, urged the need for a predictive tax system, production assurances, and consistent policy signals.
While some Indian countries make movements, Rajan said more. He warned that “foreign direct investment did not get enough attention”, on the pretext that India must act decisively to put itself as a reliable manufacturing center in a fragmented global economy.
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