Trump's trade polices 'self-destructive', hurt India most: Ex-RBI chief

Former RBI Governor C Rangarajan said that he hopes good sense will prevail and the policy makers in the US will realise the policies they want to pursue are self-destructive

Former Reserve Bank of India (RBI) Governor C Rangarajan on Friday slammed the economic policies of United States (US) President Donald Trump, saying that they have brought world trade to a standstill and are "self-destructive".

 

Speaking at an event in Hyderabad, Rangarajan said, "The world today is in flux. The pursuit of certain economic policies by President Trump has brought world trade to a standstill".

 

Rangarajan, who is also the former Chairman of the Prime Minister's Economic Advisory Council, further added that India is worst-hit by such polices.

 

"Hopefully, good sense will prevail and the policy makers in the US will realise the policies they want to pursue are self-destructive. India is the worst hit," he said, as quoted by PTI.

 

 

Rangarajan, without directly mentioning Brics, also said that while regional trade blocs are bound to emerge to promote easier exchange among member nations, the larger objective should remain a unified global market with freer trade.

 

US tariffs on India

 

The Trump administration has imposed a 50 per cent tariff on Indian goods, which includes a 25 per cent punitive duty for importing Russian oil. Washington has alleged that New Delhi profiteers from cheap Russian oil, and that its purchases of the same help Russia to fund its war in Ukraine. India, however, has denied such allegations and said that it will continue to purchase Russian oil to safeguard its energy security.

 

The US administration has also reportedly asked the European Union to impose a 100 per cent tariff on Russian oil buyers India and China.

 

However, earlier this week, President Trump and Prime Minister Narendra Modi reignited hopes of a trade deal, saying they were looking forward to concluding discussions soon, following which the tariffs are likely to ease.