SparX by Mukesh Bansal Former RBI Governor Exclusive: US Tariff Shock! Raghuram Rajan Calls It A 'Wake-Up Call' For India
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Sep 13, 2025 
Raghuram Rajan, the Former RBI Governor, shares his insights on India's economic challenges as it navigates a complex global landscape. He discusses the impact of US tariffs, questioning their effect on India’s GDP growth and job market. Rajan highlights the necessity for human capital investment and the urgent need for education reform. He also addresses the disruption caused by AI and emphasizes the importance of ambition and adaptability for the youth. His views prompt a rethink on how India can secure its economic future amidst shifting geopolitics.
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Tariff Impact Is Sector-Specific And Modest
- US tariffs on Indian exports will hit high value-added sectors like textiles more than electronics.
- A full collapse is unlikely; estimated GDP hit is around 0.2–0.4% if tariffs last only months.
Lobby For Exemptions Through US Buyers
- Affected exporters should lobby US buyers and seek tariff exemptions through their US counterparties.
- The Indian government must help exporters access US lobbying channels to minimize damage.
Tariff Effects To Show Up Later
- Tariffs haven't raised US inflation yet because importers front-loaded orders and producers absorbed costs.
- Most economists expect some pass-through to U.S. consumer prices over time as inventories deplete.
